FG to refinance 3.6trn local debt in 2020

...plans N150bn sukuk bond for 44 road projects

The Federal government plans to refinance up to N3.6trn local debt in 2020, according to the Debt Management Office  (DMO).

The refinancing includes some N1.13trn worth Federal Government Bonds and N2.452trn in Treasury Bills. Patience Oniha, DMO Director-General announced this at a press meeting on Friday in Abuja.

She said the federal government would pitch its borrowings for the year around the regular FGN, savings and Sukuk bonds and may consider green bonds “if the conditions are right”.

Government plans to launch a third tranche of Sukuk bonds but hopes it could raise up to N150bn to enable it to fund 44 road projects. The earlier two came at N100bn each and according to Oniha did well.

READ ALSO: Nigeria @ 60: Okowa wants FG to fix Benin-Warri highway to save lives, goods

Federal government’s 2020 budget projects some N2.175trn  deficit which authorities say will be funded through N850 billion new foreign and N744.99 billion new domestic borrowings. N328 billion will be sourced through multilateral/bilateral sources and some N252 billion from privatisation proceeds.

“A lot of the external borrowing will be concessional,” Oniha stated.

Meanwhile, total debt for the federal government, states and Federal Capital Territory  (FCT) reached N26.215trn as at September 2019.

The debt size expanded by 2 percent in 3 months between July and September. It was recorded at N25.701trn in June.

Get real time updates directly on you device, subscribe now.