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Nigerian Govt's Borrowing Costs Are Dropping, DMO Data Reveals by deji17: 12:23am On Mar 24, 2018 |
Nigerian Govt's Borrowing Costs Are Dropping, DMO Data Reveals BY SAHARAREPORTERS, NEW YORK MAR 23, 2018 Recent data from the Debt Management Office (DMO) shows a lowering trend in domestic costs of borrowing by the Nigerian government. The percentage paid on securities have reduced by estimates of 650 base points for treasury bills, with 364 day maturity and 250 base points or 2.5% for bonds issued on July 21st 2017. This drop in yields on government’s debt instruments has occurred within a six-month period. The drop is catalysed by the government’s efforts to restructure its debts. As at last year, Nigeria’s domestic debts- which have double digit yields, made up 78% of the country’s debt profile based on 2017 analysis. Foreign debts, which go as high as 7.5%, constituted just 22%. The plan is to increase foreign debt to 40% and domestic debt to 60%. Debt Management Office Before the issuance of the November tranche of Euro bonds, Minister of Finance, Kemi Adeosun, said the country will save-up N168 billion from the November and February offer of the foreign security. At this week’s monthly sale of Federal Government bonds, the DMO placed N80bn for auction; it received bids of up to N143bn and raised N64bn (US$210m). In Q1 N254 billion was raised from bonds compared with N430 billion in the same quarter last year. These savings of 176 billion are substantial; it could boost the government’s capital expenditure. http://saharareporters.com/2018/03/23/nigerian-govts-borrowing-costs-are-dropping-dmo-data-reveals
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Re: Nigerian Govt's Borrowing Costs Are Dropping, DMO Data Reveals by LORDOFAFONJAS: 12:29am On Mar 24, 2018 |
Useless DMO |
Re: Nigerian Govt's Borrowing Costs Are Dropping, DMO Data Reveals by MizMyColi(f): 12:44am On Mar 24, 2018 |
The day I was robbed at dagger-point at Lawanson in BROAD daylight is one I will never forget in a hurry. It became clear to me how much people have become desperate in recent times. It made me live in fear for a while. I am not against good figures and media achievements. I will take the government more serious when these begin to translate to better lives for the poorest of the poor in our country. They way they peddle lies and falsehoods in this government makes me feel like nothing is real anymore as far as they are concerned. 1 Like |
Re: Nigerian Govt's Borrowing Costs Are Dropping, DMO Data Reveals by Firefire(m): 12:51am On Mar 24, 2018 |
APC, Buhary and this directionless GONMENT strives only on media propaganda & falsification. Good to hear the improvements, but how do we relate this to the basic living conditions of Nigerians? Let join to chant it, Sai Barber! 1 Like |
Re: Nigerian Govt's Borrowing Costs Are Dropping, DMO Data Reveals by deji17: 1:41am On Mar 24, 2018 |
Firefire: Congrats!! |
Re: Nigerian Govt's Borrowing Costs Are Dropping, DMO Data Reveals by 4Play(m): 7:01am On Mar 24, 2018 |
This is because the FG is taking on more external debt to reduce its borrowing costs. The interest rate on a dollar denominated loan is much lower than on a naira denominated loan. Less FG borrowing in Naira should bring down borrowing costs in Naira due to less demand. Of course the downside to borrowing in a foreign currency is that the Naira could depreciate in the future significantly increasing the costs of paying back the foreign loan. This is what happened from the 80s to the 90s leading to 2 lost decades and the deal during the OBJ era to wipe off some of the foreign debt. 4 Likes |
Re: Nigerian Govt's Borrowing Costs Are Dropping, DMO Data Reveals by deji17: 12:39pm On Mar 24, 2018 |
4Play:In conclusion, are you saying it is a good or bad thing? |
Re: Nigerian Govt's Borrowing Costs Are Dropping, DMO Data Reveals by Sirjamo: 1:27pm On Mar 24, 2018 |
Firefire:Lazy bone, your mates are out working hard while you keep waiting for the government. 1 Like 1 Share |
Re: Nigerian Govt's Borrowing Costs Are Dropping, DMO Data Reveals by Firefire(m): 1:36pm On Mar 24, 2018 |
Sirjamo: I pity you. |
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