(Bloomberg) -- Nigeria has issued bonds to refinance 4.9 trillion naira ($3.4 billion) owed to the central bank in a bid to spread out the burden of debt repayments.
Patience Oniha, director-general of the West African nation’s debt management agency, said the bonds were issued between February and April, about which time the agency also raised 4.5 trillion naira to fund domestic borrowing of 6 trillion naira planned for 2024.
The agency will “continue to monitor the market for liquidity,” for the completion of the securitization process, she said.
Nigerian lawmakers in December approved a request by President Bola Tinubu to convert 7.5 trillion naira of the government’s overdraft with the central bank into longer-dated bonds. That followed an earlier approval to convert 22.7 trillion naira of central bank loans into a 40-year bond at an interest-rate of 9%.
Nigeria under the previous administration of President Muhammadu Buhari ignored rules restricting central bank financing of the government. The abuse exploded the nation’s debts, with borrowing costs exceeding 90% of revenues last year. The current government has vowed to end the practice and respect fiscal discipline.
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