The Federal Government has indicated its intention to offer for subscription by auction N90 billion worth of bonds next Wednesday, 25th April.
The Debt Management Office (DMO) in a circular hosted on its website, stated that it would auction N30 billion of a five-year new issue maturing in April 2023 at an undisclosed rate.
It also disclosed that a N30 billion seven-year re-opening bond at 13.53 per cent to mature in March 2025 would be auctioned and that another tranche of N30 billion 10-year re-opening bond at 13.98 per cent to mature in February 2028 would be auctioned too.
The FGN bonds are debt securities (liabilities) of the Nigerian government normally issued by the Debt Management Office (DMO).
According to the Office’s bonds auction schedule, the bonds are issued monthly or as need arises to finance government’s fiscal deficits in a non-inflationary and sustainable manner.
Bonds enhance fiscal discipline, refinance maturing debt obligations of government and to establish benchmark yield curve, to develop and ensure liquidity in the domestic bond market on a sustainable basis, enhance and deepen the savings and investment opportunities of the populace, and diversify government financing sources, amongst other benefits.