says FG can’t access Eurobonds, lenders shunning B-rated countries

The Debt Management Office has disclosed that it has been difficult for Nigeria to borrow from the international markets as global lenders and investors are shunning countries with Category ‘B’ economic ratings.

According to the Director-General of the DMO, Patience Oniha, Nigeria must gear up its revenue drive while looking for alternative sources of funds internationally. “We really can’t survive like this,” she stated.

Oniha, while appearing before the House of Representatives Committee on Aids, Loans and Debt Management to defend the DMO’s 2023 budget, noted that the Federal Government had not been able to meet its external borrowing target, noting that it was now looking at lenders in the United States and Europe.


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She said, “Where there is an issue is the new external borrowings. What was provided for in the 2022 budget is N2.57tn of new external borrowings and this, in naira terms at the budget exchange rate, is $26bn. The reality is that if it were before, by now we would have issued Eurobonds to raise the money and we would be in good business. But let us say from the fourth quarter of last year, the international capital markets have not been opened to countries like Nigeria. So, in 2021, there was about $6bn to raise. We raised $4bn for that one. But this year, it is $1.25bn.

“The international markets are not looking for countries with our ratings –B ratings. The invasion of Ukraine by Russia, as you know, turned around things in the world significantly. So, inflation rates are high, interest rates are high and investors are saying there are a lot of uncertainties as to what will happen. There is a threat of recession. So, what they have decided to do is to put their money in the G-7 securities: United States, Germany, France, Japan, and so on. Those countries also issue bonds. So, that is where the investors are putting their money and rates have gone up significantly.”

Two global economic analysts and ratings, Moody’s and Fitch, recently downgraded Nigeria to Category ‘B’ economy.


Speaking on debt service, the DMO boss stated that the government must pay attention to the percentage of deficit in its annual budgets.

She said, “We really need to look at revenues. For debt to be sustainable medium term, you must earn revenues. We should not have a budget of N17tn and N10tn of deficit, and out of that (there is) new borrowing of N8.8tn, which is 50 per cent of your budget.”

https://punchng.com/nigeria-cant-survive-with-endless-borrowing-dmo/

But jealous Soludo, Okowa and APC said we should not save anything that there is no need..

God abeg ooo...

I think the chronic debt pillage under this govt is grossly intentional. The plan seem to be to borrow as much money as possible to develop the north and when the next regime steps in, they will spend all their tme and energy trying to repay these loans.

Then another Buhari will take over & start borrowing again. There is nobody that claim to love this country that will mortgage it into this current scary level of borrowing or morbid financial indebtedness.

This is not when a huge percentage of those loans were used to do infastructural projects that benefits folks in Niger republic more than folks in nigeria Meanwhile, the stupid irresponsible and senseless people in this cursed government are still reasoning with brain of the pre-medivial era:

Ok

Rubbish life

Tinubu has nothing to offer, he knows nothing about Enconomy

If Peter Obi doesn't win the next election, the APC or PDP winner will totally destroy the country and gaslight everyone.

2023 is an election whose sole aim is to save a country Buhari and his clueless kitchen cabinet members have almost ruined with mindless borrowing.

F

I ain't trippin' about the price, I gotta get what I'm payin' for
It's the principle

Antyislam:
Tinubu has nothing to offer, he knows nothing about Enconomy

A drug dealer cannot be president

Nigeria no be panama

buhari and it goons have eating nigeria and tinunbu is coming to complete it

The issue is not the borrowing but what were the borrowed funds used for.

.

One definition of Insanity is Doing Same Thing Repeatedly and Expecting a Different Result.
With PDP/Athíefku or APC/Thíefnubu it will be Business As Usual.

Nlfpmod.
Mynd44.

Dem don borrow de future.

Nigeria needs Peter Obi more than Peter Obi need Nigeria

Kkings11:
The issue is not the borrowing but what were the borrowed funds used for.

There is a limit to borrowing no matter what it's used for

Racoon:
I think the chronic debt pillage under this govt is grossly intentional. The plan seem to be to borrow as much money as possible to develop the north and when the next regime steps in, they will spend all their tme and energy trying to repay these loans.

Then another Buhari will take over & start borrowing again. There is nobody that claim to love this country that will mortgage it into this current scary level of borrowing or morbid financial indebtedness.

This is not when a huge percentage of those loans were used to do infastructural projects that benefits folks in Niger republic more than folks in nigeria Meanwhile, the stupid irresponsible and senseless people in this cursed government are still reasoning with brain of the pre-medivial era:

The plan of some elite north is to pillage the resources of the south until it finishes, and at the same time put us in pepertual slavery and debt. They are killing several birds with one stone. Make the countries and bodies we are owing huge these monies to be against the division of this fraudulent country because their money can only be repaid by one Nigeria and not a divided country. They also want to keep the south in perpetual indebtness, and using our money to pay off these unending debts. I really sorry for the south.

2elliot:
The plan of some elite north is to pillage the resources of the south until it finishes, and at the same time put us in pepertual slavery and debt. They are killing several birds with one stone. Make the countries and bodies we are owing huge these monies to be against the division of this fraudulent country because their money can only be repaid by one Nigeria and not a divided country. They also want to keep the south in perpetual indebtness, and using our money to pay off these unending debts. I really sorry for the south.

Na why restructuring dey important.

Borrow Borrow no good.

C