The Central Bank of Nigeria (CBN), in the next three months, is expected to remove not less than N162.49 billion from the country’s domestic debt profile, put at N12.29 trillion as at September 30, 2018.
The move, coming amid revenue shortages and plans to raise more than N800 billion in the same domestic market for 2019 budget implementation, may have been targeted at short-dated bills only.
The Federal Government’s debt reduction strategy since 2017 has been focused on achieving a sustainable balance between the assessed costly domestic debts and relatively cheap external debts, targeting a ratio of 60:40.
Part of the $3billion Eurobond floated between November 2017 and early part of 2018, was used to redeem local debts, adjudged to be costlier than dollar-denominated loans. Read more