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Why the Federal Government is ruling out plan to return to the Eurobond market

The Federal Government said it has no plans to return to Eurobonds market this year. The Director-General of the Debt Management Office (DMO), Patience Oniha, disclosed this yesterday while speaking during the Islamic Finance Conference in Lagos.

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Debt Management Office resumes FGN savings bond offer on August 10, Eurobonds, Patience Oniha, DMO, External debt servicing

The Federal Government said it has no plans to return to Eurobonds market this year. The Director-General of the Debt Management Office (DMO), Patience Oniha, disclosed this yesterday while speaking during the Islamic Finance Conference in Lagos.

Nairametrics understands that the Government’s decision to any dollar-denominated Eurobond for the meantime is coming after a sixth outing in November 2018 helped to raise the sum of $2.86 billion.

Why the Decision? The Federal Government said it wants to tap concessionary long-term loans to finance its 2019 budget in addition to borrowing locally.

In the meantime, foreign borrowing to fund the 2019 budget has been pegged at N802 billion.

Note that in 2016, the Federal Government of Nigeria approved a three-year plan to borrow more foreign debts. The plan was to ensure that 40 percent of its loans come from outside the country sources as part of an effort to lower borrowing costs whilst funding record-high budgets.

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Tracking Nigeria’s Debt: In 2017, Nigeria sold $3 billion in Eurobonds, part of which was used to fund its budget that year. It then followed that up with a $2.5 billion Eurobond sale last year (2018) which was used to refinance local currency bonds at a lower cost.

Meanwhile, just recently the DMO had, on behalf of the Federal Government, listed some Eurobonds in a dual-tranche of $2.50 billion and a triple-tranche of $2.86 billion on both the FMDQ Securities Exchange and the Nigerian Stock Exchange (NSE).

Purpose of the Eurobonds: Speaking during the listing on the FMDQ in  Lagos, Oniha said that the bonds were raised for the refinancing of the country’s domestic debt.

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According to her,  the $2.50 billion Eurobonds issued in February 2018 was meant for the refinancing of domestic debt, while  $2.86 billion dollars Eurobonds floated in November 2018 was purposely for the financing of the capital project of the budget.

The Eurobonds proceeds would be used to fund the fiscal deficit of the country, as well as other financing needs.

The efficiency of the Eurobonds: The Eurobond issuances are expected to spur private sector participation in the Nigerian capital markets as domestic investors stood to gain increased access to instruments in the secondary markets and a widened opportunity for portfolio diversification.

Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ). Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.

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ENDSARS

Just in: UK High Commission shuts down visa centres in Nigeria due to #EndSARS protests

The UK High Commission in Nigeria has announced the shutdown of its VISA application centers in Nigeria.

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Just in: UK High Commission shuts down visa centres in Nigeria due to #EndSARS protests

The United Kingdom High Commission in Nigeria on Wednesday, October 21, 2020, announced the shutdown of its VISA application centers in Nigeria for the next 48 hours, with effect from today (Wednesday), due to the ongoing #EndSARS protests in the country.

This comes barely a day after the US shut down its Lagos consulate, following the outbreak of violence from the #EndSARS protests in major parts of the country including Lagos State and the FCT.

The disclosure was contained in a statement issued by the UK High Commission in Nigeria on Wednesday, October 21, 2020.

The High Commission in a brief statement, also asked applicants with appointments for Wednesday and Thursday, to reschedule their appointments from Monday, October 26th.

Due to the ongoing protest in Nigeria and for the safety of both staff and applicants, our Nigeria centres will be closed for 48 hours at a minimum. For applicants with booked appointments within this period, please you will need to reschedule your appointment for next week, from 26th October 2020.

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“We will continue to post regular updates on this page, so please keep checking back for the latest information on reopening. We sincerely apologize for the inconvenience and thank you for your understanding.”

(READ MORE:#EndSARS: Nigerian Army set to commence Exercise Crocodile Smile VI)

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ENDSARS

#EndSARS: Archbishop of Canterbury condemns Lekki shootings

The Archbishop of Canterbury has joined his voice to the condemnation of the shooting of protesters in Lagos.

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#EndSARS: Archbishop of Canterbury condemns Lekki shootings

The Archbishop of Canterbury, Justin Welby says he condemns the shooting of unarmed protesters in Lekki and urges President Muhammadu Buhari to ensure that lives are protected.

The Archbishop, who is the Chief of the Anglican Church globally disclosed this on Wednesday morning, as the  International Community reacted to videos of protesters getting shot at the Lekki tollgate.

Recall Nairametrics reported that several social media accounts revealed peaceful protesters were being shot at by the military at the Lekki toll gate holdout for the #EndSars protest.

The Nigerian Army, however,  denied deploying soldiers to attack #EndSARS protesters who assembled at the Lekki Toll Plaza.

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The Archbishop earlier said in his statement, “I condemn in the strongest terms the reported deliberate shooting of unarmed protesters in Lagos and other parts of Nigeria.

“I have urged President Muhammadu Buhari directly to ensure that lives are protected – and I say that again now.

“I mourn for Nigeria. May God save Nigeria.

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ENDSARS

JUST IN: #EndSARS: NPA headquarters set on fire by hoodlums

The headquarters of the NPA in Lagos has been allegedly set on fire by hoodlums.

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The headquarters of the Nigerian Ports Authority in Marina, Lagos has been reportedly set on fire by hoodlums involved in the #EndSARS protests.

According to some social media reports, the hoodlums who seem to be protesting the shooting of unarmed protesters at the Lekki Tollgate set ablaze the NPA building on Wednesday, October 21, 2020.

Details later…

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