Nigeria Government Announces Fresh Borrowings Through Bonds For 2023 With Only Months To Handing Over

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DMO in the statement announcing the new bond said one is a two-year FGN Savings Bond due in Jan. 11, 2025, at the interest rate of 9.600 percent per annum.

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President Muhammadu Buhari’s administration, that is drawing the curtains by May, has announced another round of borrowings through bonds which the next government will have to inherit from him.

The new borrowing plan for 2023 was announced by the Debt Management Office (DMO), in a statement released on Tuesday, calling for subscription for the two Federal Government of Nigeria (FGN) Savings Bonds that have maturity dates in 2025 and 2026 respectively.

DMO in the statement announcing the new bond said one is a two-year FGN Savings Bond due in Jan. 11, 2025, at the interest rate of 9.600 percent per annum.

The other is a three-year FGN Savings Bond due in Jan 11, 2026, at the interest rate of 10.600 percent per annum.

According to the details of the bonds issuance, opening date would start from Tuesday, Jan. 3, while the closing date would be Friday, Jan. 6, 2023 and settlement date, Jan. 11, while coupon payment dates would be April 11, July 11, Oct. 11 and Jan. 11.

The statement partly read, “They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Interest is payable quarterly while bullet repayment (principal sum) is on maturity.”

The debt management office further stated that the FGN Savings Bonds qualified as securities in which trustees could invest under the Trustee Investment Act.

It added, “They also qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds.

“They are listed on the Nigerian Stock Exchange Limited and qualify as liquid asset for liquidity ratio calculation for banks.”

It noted that the bonds were backed by the full faith and credit of the FGN and charged upon the general assets of the country.
Meanwhile, as at December 22, 2022 Nigeria’s domestic debt stood at N22.57tn.

President had also in December last year sought for the approval of the National Assembly for N819.54bn supplementary budget, which it planned to finance through domestic borrowing.

Buhari had in the proposal forwarded to the National Assembly for approval, stated that N819.5bn supplementary budget for the 2022 fiscal year was to fix various infrastructure destroyed by floods across the various states in the country a few months ago.

The supplementary budget as explained by the President in a letter read in plenary by the President of the Senate, Ahmad Lawan, is meant for the capital expenditure component of the 2022 budget with an attendant increase of deficit to N8.17tn.

Godwin Okafor, The Naija247news
Godwin Okafor, The Naija247newshttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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