Alarm, as FG chokes private sector out of bonds market

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Alarm, as FG chokes private sector out of bonds market

*FG raises N4.7 trillion as corporates raise N802 bn YtD

*Analysts recommend options on private sector debt capital

*Risk of sovereign default, economic nightmares increasing, use of debt as financing tool careless — Experts

By Peter Egwuatu

Indications have emerged that the Federal Government’s bond issues are squeezing the private sector out of the bonds market as it has raised over N4.7 trillion, far above what  private sector organisations have been able to raise from the Nigerian capital market, Year-to-Date, YtD August 2021.

The private sector raised N802 billion in corporate bonds from the capital market for the same period.

Consequently, analysts and capital market operators have criticised government’s excessive borrowing from both internal and international markets without considering the revenue to service the debt even as it has reached the alarming point of crowding out the productive real sector.

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Source: Vanguard Newspaper