Nigeria has no plans to go to eurobond market this year

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LAGOS, June 18 – Nigeria has no plans to return to the eurobond market this year, after a sixth outing in November raised $2.86 billion, the head of the debt office said on Tuesday.

Nigeria approved a three-year plan in 2016 to borrow more from abroad. It wants 40 percent of its loans to come from offshore sources to lower borrowing costs and help to fund record-high budgets.

Asked whether the government would consider a U.S. dollar- denominated eurobond, Patience Oniha said, “For 2019, given the process, I would say no.”

Foreign borrowing for the 2019 budget is set at 802 billion naira ($2.7 billion), Oniha said at an Islamic finance conference in Lagos.

Nigeria, which emerged from recession last year, has borrowed abroad and at home over the past three years to help finance its budgets and to fund infrastructure projects, but debt servicing cost is also rising

The government has said it wanted to tap concessionary long-term loans to finance its 2019 budget in addition to borrowing at home.

It sold $3 billion in eurobonds in 2017, part of which it used to fund its budget that year. It then followed with a $2.5 billion eurobond sale last year to refinance local currency bonds at lower cost.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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