Nigeria’s $15.9bn Eurobonds Debts, MPC Worries Over Rising Figures

The Monetary Policy Committee members of the Central Bank of Nigeria (CBN) have expressed concerns about the country’s ability to service and repay its external and local debts due to the growing level of Nigeria’s debt

According to them, the country’s appetite for Eurobonds at high interest rates, with the associated exchange rate risk, is particularly alarming.

Nigeria currently has a total of $15.918 billion outstanding Eurobonds debts at at March 2022 and continues to accumulate more.

Also Read: N41.6tr debt: Nigeria Fails Disclosure Rule set for IDA counties – World Bank

The country had in the first quarter of the year spent N898.6 billion in servicing both local and foreign debts. With a N6.26 trillion budget deficit and over N4 trillion still budgeted for fuel subsidy this year, the federal government plans to further increase its borrowings this year through Eurobonds.

A breakdown of the $15.918 billion Eurobonds debts as obtained from the Debt Management Office (DMO) indicates as follows:

$500 million, July 2023 Eurobond raised at 7.625 per cent: $1.118 billion November 2025 Eurobond, at 6.500 per cent; $1.5 billion November 2027 Eurobond, at 6.125 per cent; $1.25 billion September 2028 Eurobond, at 8.375 per cent and $1.25 billion March 2029 Eurobond.

Others include the 7.143 per cent $1.25 billion due by February 2030; Eurobonds $1.0 billion January 2031 at 8.747 per cent interest yield; Eurobond, 7.875 per cent; $1.5 billion FEB 2032 Eurobond, 7.375 per cent; $1.5 billion September 2033 Eurobond, 7.696 per cent; $1.25 billion February 2038 Eurobond, 7.625 per cent; $1.5 billion November 2047 Eurobond, at 9.248 per cent; $750 million January 2049 Eurobond and 8.25 per cent $1.25 billion due by September 2051 Eurobond.

However, In the first quarter of this year, Nigeria’s total debt stock was N41.6 trillion, with the IMF projecting that the amount will reach N46 trillion by the end of this year.