Buhari set to borrow $1.4 billion

Buhari set to borrow $1.4 billion


The Nigerian government is planning to borrow between N305 billion and N395 billion which will come in local currency-denominated bonds, Naij reports.

The Federal Government has stated that this is in line with its long-term plan to borrow approximately N900 billion locally to finance part of the N2.2 trillion deficits in the 2016 budget.

According to the Debt Management Office, it plans to auction between N105 billion and N135 billion worth of bonds maturing in 2021, 2026 and 2036 in July.

The debt office recently announced that it plans to raise between N274 billion and N365 billion in local currency-denominated bonds with maturities ranging between five and 20 years in the second quarter of the year.

According to News24 Nigeria reports, Analysts such as Rand Merchant Bank(RMB) are weary of the government’s plans to borrow money owing to the precarious financial position Nigeria finds itself in.

“Despite the finance ministry’s intention to borrow US$5 billion from a host of creditors, its budget expectations are impractical given the demands on the government’s coffers by Nigeria’s cash-strapped states,” RMB said.