Amid growing concerns about Nigeria’s rising debt stock, the Debt Management Office (DMO) on Monday allotted N931.8 billion in Federal Government of Nigeria (FGN) reopened bonds with three tenors worth N1.2 trillion to investors, despite the over-subscription level at the auction.
The bonds worth N1.2 trillion with JAN-2035, APR-2037, and JUN-2038 maturities was auctioned by the Office as part of efforts to fund the government’s 2026 budget deficit.
According to an auction circular by the DMO on the debt instruments, each bond class worth N400 billion with subscription hitting about N1.7 trillion as investors’ appetite for safe investment assets remained strong.
Specifically, the 10-Year reopened bond worth N400 billion was offered at the auction, recorded N554.7 billion subscription while the DMO sold N245.73 billion to investors at the rate of 18.34%, the same as the previous auction.
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Data from the DMO indicated that the 15-year reopened bond worth N400 billion was also offered for subscription at the auction, it attracted N518 billion subscription, with total allotment by the Office of N304.63 billion and sold at 18.40% rate.
Also, Nigeria’s 20-Year reopened bond worth N400 billion was placed on offer, it attracted N665.19 billion in subscriptions and the Office allotted N381.46 billion at the marginal rate of 18.35%.
It would be recalled that the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, on Monday had to defend the government’s borrowings, saying they are desirable for sustainable development of the country.
Oyedele, who appeared before the committee to clarify the state of the nation’s economy, while responding to a question by Senator Adamu Aliero on alleged N80 trillion debt profile incurred by the present administration in addition to N75 trillion inherited, explained that the President Bola Tinubu-led government did not borrow money near the quoted figure.
He clarified: “When this administration came into office, public debt was around N75 trillion. Many people simply compare that figure with today’s debt stock and conclude that this government has borrowed massively.
“However, it is important to note that, following the reforms and the depreciation of the naira, the foreign currency component of our public debt had to be revalued because Nigeria reports its debt in naira. That accounting adjustment alone added more than ₦40 trillion to the public debt figure.
“Another important factor is the securitisation of the Ways and Means advances from the previous administration, which the National Assembly approved. About ₦33 trillion was added to the public debt through that process. It was not new borrowing; it was simply bringing previously existing obligations onto the official debt books.
“These factors have not always been properly explained, which is why the reported public debt appears much larger.
“The actual amount this administration has borrowed is nowhere near what many people believe. Even for domestic borrowing, much of it is refinancing. Debt that was borrowed previously matures, and the government raises new debt to refinance it. That is not new borrowing”, the minister added.
