Nigeria raised N121bn ($372.88m) in an auction of local-currency bonds on Wednesday, with yields higher across the board, according to briefs from the Debt Management Office.

The debt office sold N15bn of 2021 paper at 15.14 per cent at Wednesday’s auction, compared with 15.08 per cent at the previous auction last month.

It also sold N30bn of 2026 debt at 15.53 per cent, against 15.28 per cent, and N60bn of 2036 debt at 15.59 per cent, compared with 15.53 per cent, Reuters reported.

The debt office also allotted an additional N16bn worth of the 2021 debt on a non-competitive basis to mandate clients.

The Federal Government had said it would borrow about N900bn locally to finance part of the N2.2tn deficit in its 2016 budget, to plug shortfalls.

The country issues local bonds as part of measures to finance the government budget deficit and also to help manage liquidity in the banking system.

On August 18 this year, the Federal Government at an auction raised N110bn worth of bonds maturing in 2021, 2026 and 2036.

According to the DMO’s auction result obtained from its website then, N40bn of 2021 paper was sold at 14.50 per cent.

It also sold N30bn of 2026 paper at 12.50 per cent and N40bn of 2036 paper at 12.40 per cent.

The summary stated that an additional N109.5bn of the 14.50 per cent July 2021 bonds was allotted on non-competitive basis.

Subscriptions from investors for the July 2021 bond, which was reopened, stood at N74.37bn, while that of January 2026, which was also reopened, stood at N71.06bn.

Subscriptions for the reopened March 2036 bond stood at N64.86bn.

In a related development, the Chief Executive Officer, Nigerian Stock Exchange, Mr. Oscar Onyema, has said that there is significant market potential for green bonds in the country.

He said as a developing market, with a population in excess of 180 million people, and projected annual carbon emission of 900 million tonnes, the country required significant capital to develop mitigation and adaptation interventions that would reduce the emission level.

Onyema said this when the Federal Government held a stakeholders, consultation on the pilot issuance of green bonds. The forum was part of a continuing collaboration between the Ministry of Environment and the Ministry of Finance to explore and develop a product that can leverage and channel resources towards viable green projects and also contribute to the achievement of the nation’s development objectives.

The NSE boss stated that green bonds could mobilise funds from investors who had strong environmental focus, required transparency and have lower risk appetite.