Domestic Bonds

DMO releases FG’s N720 billion borrowing plan for Q2 2022

The Debt Management Office (DMO) has released a timetable for the Federal Government’s N720 billion domestic borrowing plan for the second quarter.

This disclosure is contained in an appendix titled, ‘FGN Bond Issuance Schedule for Q2 2022’issued by the DMO and available for consultation on its website.

The DMO in the calendar said it would open a new FGN 2032 bond on April 25, valued at N70-80 billion, with a tenor of 10 years. The bond is expected to have an interest rate of 13 percent per annum.

  • On April 25, the DMO will reopen a 2025, 2-year, 11-month FGN bond valued at N70-80 billion with an original term of 7 years and an interest rate of 13.53%.
  • Also on April 25, the DMO will also reopen a 2042 FGN bond on the same date, valued at N70-80 billion.
  • The calendar shows that for May 16, the DMO will re-open a 2025, 2-year, 10-month FGN bond, valued at N70-80 billion, with an original tenor of 7 years and an interest rate of 13.53% per year.
  • On the same date, the DMO in the calendar said it would offer a new FGN 2032 bond worth between N70 billion and N80 billion, with a tenor of 9 years, 11 months and an interest rate of 13%.
  • Also on May 16, the DMO will reopen a 2042 FGN bond for subscription, valued between N70 billion and N80 billion, with a tenor of 19 years and 8 months.
  • On June 20, the DMO will reopen an April 2032 FGN bond, valued at N70-80 billion, with a duration of 19 years and 7 months.
  • The DMO would also reopen the March 2025 FGN bond, valued at N70-80 billion, with a duration of 2 years and 9 months.
  • Additionally, June 20 will see the reopening of an FGN 2042 bond, valued at N70-80 billion.

What you should know

  • This comes at a time when serious concerns have been expressed by Nigerians, experts and multilateral financial institutions over Nigeria’s growing debt profile, which was estimated at N39.55 trillion as of December 2021.
  • This DMO bond issuance is likely to increase the country’s debt stock by another N720 billion in the second quarter of the year.