For 2023 budget, the federal government is looking at financing a deficit of N10.5 trillion most of which would be funded by debt. However, with a debt burden of over N42 trillion and surging debt servicing obligations spurred by the rising interest rates globally, the country has a short window in accessing the international debt market.
The Nigerian government has $15.918 billion outstanding Eurobonds debts at March 2022 and continues to accumulate more, but as central banks continue to pursue aggressive tightening, and raising interest rate, approaching the Eurobond market become more expensive for a government that is already spending more than 100 per cent of its retained revenue on servicing its debts.
Although, the Nigerian Minister of Finance, Budget and Planning had reiterated that the country is not planning to restructure its debt, there has been jitters, particularly among bond holders that a debt restructuring might be in the books for the country.
The minister, Zainab…
Source: Leadership Newspaper