The Federal Government is looking to fund part of its N2.2 trillion budget with local bonds as the Debt Management Office, DMO, on Wednesday plans to float 105 billion naira in local currency denominated bonds on May 11.
The detail was disclosed yesterday to a foreign news agency.
The office said it will sell 50 billion naira of a bond maturing in 2036, 40 billion of paper maturing in 2026 and 15 billion of debt maturing in 2020, using the Dutch auction system.
Results of the auction are expected to be released on the following day.
All the bonds on offer are reopening of previous issues.
The country issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.
But with shortage of revenue from oil, Nigeria’s main economic mainstay, the N105 billion may serve just the purpose of beefing up government spending in the year.
The government plans to borrow about 900 billion naira locally to finance part of the 2.2 trillion naira deficit in its 2016 budget.