Nigeria Issues Bonds to Refinance $3.4 Billion Debt Owed to Central Bank


Nigeria has issued bonds to refinance 4.9 trillion naira ($3.4 billion) owed to the central bank, aiming to ease the burden of debt repayments. Patience Oniha, the director-general of the Debt Management Office, announced that the bonds were issued between February and April. During this period, the agency also raised 4.5 trillion naira to fund domestic borrowing for the 2024 fiscal year.

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The Debt Management Office will “continue to monitor the market for liquidity” to complete the securitization process, Oniha added.

In December, Nigerian lawmakers approved President Bola Tinubu’s request to convert 7.5 trillion naira of the government’s overdraft with the central bank into longer-term bonds. This followed an earlier approval to convert 22.7 trillion naira of central bank loans into a 40-year bond with a 9% interest rate.

Under former President Muhammadu Buhari, the Nigerian government frequently bypassed rules limiting central bank financing, significantly increasing the nation’s debt. Last year, borrowing costs exceeded 90% of revenues. The current administration has pledged to end this practice and adhere to fiscal discipline.

Godwin Okafor
Godwin Okafor
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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