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Nigeria confirms no plans for fresh Eurobond issues

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Federal government on Tuesday confirmed that it has no plans to source debt from the Eurobond market this year as it shifts its focus to domestic borrowing and sourcing from concessional sources.

This was confirmed by the Director General of the Debt Management Office, Patience Oniha at an investor conference held on Tuesday.

The Investors Conference with the Federal Government of Nigeria was put together by CitiBank.

The conference which was held online was titled COVID-19, Economic and Budgetary Update. Nairametrics listened in on the Conference Call.

“When we saw where the market was based on the challenges we needed to address in terms of Covid-19 we planned the borrowing to be domestic and then external from concessional sources. We did not include the plan for this year to access the international market. We did not know how long this we last, what the cost will be and all the countries that came to the market were all investment-grade so we did not want to take a chance” she clarified.

She then confirmed that new Eurobond sales are not planned for this year but did not entirely rule it out.

“Not for this year but certainly to go back to that market (Eurobond Market) we have to see where the levels again remember that I said borrowing in the domestic cheaper than borrowing in the international market. Having said that I haven’t seen any country in the B- rating in the market at this time” she concludes.

On whether Nigeria was seeking a debt relief from its creditors she maintained this was not the case and that the country was not seeking any debt relief. According to Oniha, “Nigeria is not looking to getting a relief from its creditors whether commercial or bilateral.” Commercial loans refer to loans sold on the foreign market like Eurobonds while bilateral loans are loans between countries like that between China and Nigeria.

Nairametrics

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