(Bloomberg) -- Nigerian authorities have failed to pay coupons on two savings bonds on time and blamed the delay — the second in two months — on system and processing issues.
The nation was due to pay the first coupon on two- and three-year debt it sold in June on Sept. 12, according to investors. Nigeria raised 4.2 billion naira ($2.56 million) from the sales.
Debt Management Office Director-General Patience Oniha attributed the delay to system and process issues that are “being addressed.”
“I expect an outcome today,” she said in a response to questions on Friday.
Subscribers to other savings bonds said there was a week’s delay in coupon payments due in August, the first time they experienced a hold-up since the introduction of the instruments seven years ago.
The delayed payments may raise concerns that the government is coming under pressure from its rising debt burden.
Debt-service payments of 2.3 trillion naira in the first three months to March were almost twice revenue of 1.4 trillion naira in the same period, according to monthly fiscal accounts published on the government’s open treasury website.
The Debt Management Office sold the notes that were due to pay coupons on Sept. 12 at 17.4% for the two-year and 18.4% for the three-year from June 3 to 7, according to statement on the debt agency’s website. Coupon payments should take place quarterly on the 12th day of September, December, March and June, it said.
Africa’s most populous nation introduced the savings bond in 2017 to diversify sources of borrowing and also give retail investors the opportunity to earn income by investing in government papers.
(Corrects coupon-payment date in eighth paragraph.)
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