Finding creditors to close the hole in its finances will be a difficult assignment for the Federal Government of Nigeria.
According to the most recent data from the Debt Management Office (DMO), Nigeria failed to convince investors to purchase Federal Government bonds for the first time in 2022.
According to the DMO website, the Federal Government only raised N107.88 billion in October despite its goal of N225 billion.
This implies a shortfall of N117 billion and highlights investors’ worries in light of the rising inflation and the stringent policies of the Central Bank of Nigeria.
The total subscription level reported at the October auction was the lowest thus far in 2022, in contrast to other auctions with records of oversubscription.
The performance of the Nigerian government bond in October could endanger its ability to finance the 2022 budget deficit, and it may have to seek help from the CBN
Already, CBN in 2022 has provided over N4 trillion bail out fund, which many analysts considered very excessive.
Ripples Nigeria had earlier reported that the federal government is currently owing CBN over N20 trillion.
