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N611bn Gone in 31 Days: FG’s Dollar Bond Costs Spark Fresh Debt Fears
The Debt Management Office (DMO) has disclosed that it expended N611.71 billion in March to service the federal government’s maiden dollar-denominated bond issued within the domestic market.....KINDLY READ THE FULL STORY HERE▶
The Debt Management Office (DMO) has revealed that it spent N611.71 billion in March to service the federal government’s first-ever dollar-denominated bond issued within the domestic market.
According to the DMO’s report titled “Actual Domestic Debt Service for January to March”, the March payment accounted for 47.05 percent of the total N1.3 trillion spent on domestic debt servicing that month. Over the entire first quarter of 2025, the dollar bond represented 23.4 percent of the N2.61 trillion spent on servicing domestic debts.
The agency noted that an interest payment of $44.97 million was due on March 6, which was converted at the official exchange rate of N1,511.80 per dollar, amounting to N67.98 billion. However, the total debt service cost for the bond in March stood at N611.71 billion, indicating additional obligations beyond the interest component.
The federal government had on August 20 floated its inaugural $500 million domestic dollar-denominated bond, offering units at $1,000 each to investors.
Reflecting on the outcome of the issuance, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that the bond was 180 percent oversubscribed, raising $900 million in total.
“The successful issuance of this inaugural Domestic FGN US Dollar Bond shows that investors and Nigerians alike maintain confidence in the country’s economic direction,” Edun said. He added that the proceeds would be channelled into key sectors of the economy, as approved by President Bola Tinubu.
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