In comparison to the same period in 2022, the value of listed Federal Government of Nigeria bonds on the Nigerian Exchange Limited, or NGX, has dropped dramatically by 93.2 percent to N183 billion. This year, the majority of the bonds listed on the exchange were FGN Savings Bonds, as opposed to the previous year’s mix of Federal Government Bonds and Savings Bonds.
According to analysts, the Federal Government borrowed less money from the main market during the review period than it did during the similar period in 2022, as seen by the drop in the listing of the FGN Bond this year.
Analyst and Executive Vice Chairman of HighCap Securities Limited, David Adonri, responded to this development by saying: “The reduction of FGN Bond listing could be an indication that government borrowed less in the domestic market and its implication is that it could affect liquidity in the secondary market.”Internal borrowing has now grown to such frightening proportions that it is pushing out the actual economy’s productive sector.
The previous administration’s excessive borrowing at the expense of the private sector, which is the backbone of the economy, calls into doubt the viability of their economic plan.