Nigeria has issued a seven-year tenor $1.25 billion Eurobond at a coupon rate of 8.375%, becoming the first emerging market sovereign bond issue since invasion of Ukraine by Russia.
The debt is part of the government’s plan to raise $6.1 billion overseas, seeking to narrow the country’s budget deficit. The International Monetary Fund forecasts the gap will widen to 6.4% of gross domestic product this year from a pre-pandemic average of 4.3%, due to the rising cost of fuel subsidies.
On 24 September 2021, Nigeria issued $1.25 billion at 6.125% bonds due in 2028, $1.5 billion at 7.375% bonds due 2033, and $1.25 billion at 8.25% bonds due 2051.
As of 30th September 2021, Nigeria’s total public debt stood at $92,626.41 million, comprising $37,955.09 million of external debt and $54,671.32 million of domestic debt.
Meanwhile, from a January average of 288 naira ($.70) per liter, diesel now sells for over N700 ($1.69) per liter in Nigeria. It is causing widespread anxiety for businesses that rely on the product to power generators that make up for historically unstable power supply. Nigeria, Africa’s biggest crude producer, depends on fuel imports to meet local demand as its four refineries are either not working at all or operating below their installed capacity.
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