Due to the outbreak of the Omicron COVID-19 variant the federal government has suspended plans to sell additional N2.18 billion Eurobonds.
An Eurobond is a debt instrument denominated in a different currency than the local one of the country where the bond is issued.
Patience Oniha, director-general for the Debt Management Office (DMO) stated how the government was carefully monitoring the international capital market for an additional $2.18bn. Eurobond issuance after successfully raising $4 billion in September. She added that $6.18bn will make up the amount external borrowings already appropriated in the 2021 budget.
The federal government projected N8.12 trillion total revenue to fund the 14.57 trillion aggregate expenditure. Consequently, the projected fiscal deficit of N6.45 trillion is expected to be financed mainly by domestic and external borrowings.
The Eurobonds issues a substantial amount of funds to finance projects listed in the 2021 budget.
– The Cable