January 18,2023

THE Debt Management Office (DMO) has announced plans by the federal government to borrow N1.2 trillion through bonds in the first 3 months of 2023

The DMO disclosed this in its FGN Bonds issuance calendar for Q1 2023

According to the DMO calendar, the Federal government is looking to sell between N320 billion and N400 billion worth of FGN bonds in each of the three months in Q1 of 2023.

The FGN bonds come in four different maturities and interest rates namely 13.98% FGN FEB 2028, 12.50% FGN APR 2032, and 16.2499% FGN APR 2037.

The DMO also disclosed that the FGN Bond auctions will be held on January 30th, February 13th and March 20th, 2023.

The N1.2 trillion to be raised via FGN Bonds in Q1’23 represents 13.6 percent of the N8.8 trillion 2023 budget deficit.

In all the federal government is looking at borrowing a total of N7.04 trillion in the 12 months of 2023 to help fund projects in its budget.

Last year, the DMO raised N3.06 trillion through FGN Bonds as part of efforts to finance the 2022 budget deficit of N7.35 trillion.

The N3.06 trillion raised represented a 13 percent increase when compared with the N2.71 trillion raised in 2021.

Analysis of the monthly auction results showed that DMO offered N2.48 trillion worth of FGN Bonds while it sold N3.06 trillion, which is over 23 percent oversubscription.