• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Nigeria’s growing appetite for debt ignores fiscal alarm bells

3 years ago
in Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
Bonds - norvanreports

Bonds - norvanreports

63
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Nigeria’s growing appetite for debt ignores fiscal alarm bells

Nigeria is not heeding calls to cut compulsive spending and manage a ballooning debt service cost that the International Monetary Fund (IMF) predicts will gulp 92 percent of public revenues this year.

Rising global interest rates has made it more expensive for frontier and emerging markets to borrow money from the international market, yet Nigeria’s debt appetite remains high as government expenses pile. This year, Abuja increased its spending plans to make room for a nine-fold increase of a controversial petrol subsidy.

The government is planning another Eurobond sale of $950 million in May, according to Zainab Ahmed, the finance minister. That will be the second time this year that the government is tapping a volatile Eurobond market that many sovereigns have steered clear off for fear of high pricing.

Nigeria’s return to the international debt market at a time investors are wary of the volatility across financial markets shows the government’s urgent need for cash.

Wasteful spending like the petrol subsidy will continue this year, gulping nearly a third of the federal budget and pushing the budget deficit to the highest in 23 years, according to Central Bank data compiled by BusinessDay.

“The sad reality is that the federal government is running a very large deficit which cannot practically be funded only from the local markets,” said Egie Akpata, chairman of Lagos-based financial advisory firm, Skymark Partners Limited.

RelatedPosts

African Debt and Climate Change: How the ICJ’s Vanuatu Ruling Could be Used for Broader Justice

European Leagues Defend Plans to Stage Matches Abroad Amid EU Criticism

Bank of Ghana Sets Gold Coin Price at GHS 39,273 Per Ounce

Some analysts had expected the government to return to the market much later than the new May timeline given by the finance minister.

Read: 40% of bitcoin investors are now underwater, new data shows

“Eurobond yields have been rising, so the sooner Nigeria sells a new issue, the cheaper it would be relative to waiting till later in the year,” Akpata said.

“The issue would likely be successful, but Nigeria may pay a substantially higher rate than the recent March issue” Akpata added.

Nigeria successfully issued the continent’s first Eurobond in 2022, raising $1.25bn in March at the cost of 8.375 percent, a premium over its dollar bonds due 2028, which were trading at a 7.83 percent yield at the time.

The sale shocked global fund managers who felt the market conditions did not support a Eurobond issue on the back of rising funding costs which was partly fueled by Russia’s invasion of Ukraine.

“It was unexpected,” Tatonga Rusike, the London-based sub-Saharan Africa economist at Bank of America Corp, said of Nigeria’s Eurobond sale.

“Our base case expectation for Nigeria’s issuance was in the second half” of the year, Rusike said, though admitting that despite high oil prices, the government continues to run a budget deficit, requiring external financing.

Nigeria, which should benefit from the rally in oil prices, is unable to do so due to challenges from oil theft to low production and the rising cost of the petrol subsidy bill which the government said it was taking the Eurobond to partly fund.

The World Bank estimates Nigeria’s subsidy bill will top N4 trillion ($9.6 billion) this year.

Tags: Covid-19EurobondIMFNigeriaNigeria’s growing appetite for debt ignores fiscal alarm bells
No Result
View All Result

Highlights

Rewriting the Rulebook: Ghana’s Battle to Restore Currency Credibility

Bank of Ghana Raises GHS 836m in Short-Term Bill Auction at 24.8% Yield

Importers Urged to Use Credit Cards as BoG Tightens Foreign Currency Rules

FirstBank Prepares for 2025 Staff Engagement Empowering People, Shaping Culture, Achieving Targets

Gov’t to Overhaul Investment Law, Create 24-Hour Economy Authority in New Bills to Parliament

Ghana, Singapore Push Cross-Border Payments and SME Ties as Mahama Hails Stabilising Economy

Trending

Features

African Debt and Climate Change: How the ICJ’s Vanuatu Ruling Could be Used for Broader Justice

August 28, 2025

African Debt and Climate Change: How the ICJ’s Vanuatu Ruling Could be Used for Broader Justice African...

European Leagues Defend Plans to Stage Matches Abroad Amid EU Criticism

August 28, 2025

Bank of Ghana Sets Gold Coin Price at GHS 39,273 Per Ounce

August 28, 2025

Rewriting the Rulebook: Ghana’s Battle to Restore Currency Credibility

August 28, 2025

Bank of Ghana Raises GHS 836m in Short-Term Bill Auction at 24.8% Yield

August 28, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.