…To be convert into 30-yr bond
The Federal Government of Nigeria is owing to the Central Bank of Nigeria, (CBN), a whopping sum of about N10 trillion circa $25 billion. This is according to the Director-General of the Debt Management Office, (DMO), Ms. Patience Oniha.
She mentioned this at an ongoing Zoom meeting with investors and analysts.
According to her, the debt will be converted into bonds by the CBN in a bid to ending one of the longest borrowing sprees on record from the CBN’s ‘Ways and Means’ window.
In the de-brief session held via Zoom, Ms. Oniha explained that the government’s borrowing via Ways and Means could no longer be sustained leading to the decision to convert the loans into bonds.
This move, she said, seeks to not just formalise the CBN’s lending to the government but also make it somewhat legal for the government’s past and perhaps future borrowing.
The Minister of Finance, Zainab Ahmed, first revealed in January that there are plans between her ministry and the CBN to convert loans from the apex bank into tradeable securities.
In 2020, the government borrowed about N2.9 trillion from the CBN via ‘Ways and Means’ to fund a budget deficit of about N6.1 trillion.