The report that the Debt Management Office has announced that it raised N724.9 billion in February 2023 Federal Government bond auction and the report that some commercial banks and filling stations have stopped collecting the old naira notes from customers, contrary to the ruling of the Supreme Court are some of the leading stories in Nigerian newspapers on Tuesday.The Punch reports that the Debt Management Office has announced that it raised N724.9 billion in February 2023 Federal Government bond auction.
DBO said it was a 100% increase compared to the previous year.
The auction, which was held on February 13, 2023, saw a total of 577 bids worth N724.9 billion received for the total amount offered of N360 billion.
The total amount allotted was N771.56 billion, with successful bids allotted at marginal rates of 13.99%, 14.90%, 15.90%, and 16.00%.
The original coupon rates for each bond will be maintained, with successful bids for the 13.98% FGN FEB 2028 (10-Year Bond), 12.50% FGN APR 2032 (10-Year Bond), 16.2499% FGN APR 2037 (20-Year Bond), and 14.80% FGN APR 2049 (30-Year Bond) being allotted at the marginal rates of 13.99%, 14.90%, 15.90%, and 16.00%, respectively.
The settlement date for the auction was February 15, 2023, and the bonds will mature on February 23, 2028, April 27, 2032, April 18, 2037, and April 26, 2049, respectively.
According to a statement on the DMO’s website, it said the auction was part of its efforts to raise funds for the implementation of the Federal Government’s 2023 budget and to finance critical infrastructure projects across the country.
“The DMO has been actively promoting the issuance of FGN bonds as a means of diversifying the country’s funding sources and reducing its dependence on short-term borrowing. The FGN bond market has grown significantly in recent years, with a wide range of maturities and attractive yields for investors.
“Overall, the results of the February 2023 FGN bond auction highlight the continued strong demand for FGN bonds and the government’s commitment to meeting its funding needs through the capital markets.”
But, In recent years, Nigeria’s rising debt profile has been a topic of concern, with some experts warning that the country’s debt levels are unsustainable.
The DMO stated in January that Nigeria’s public debt could rise to N77 trillion if the country’s “ways and means” are securitised.
The newspaper says that some commercial banks and filling stations have stopped collecting the old naira notes from customers, contrary to the ruling of the Supreme Court restraining the Federal Government from enforcing the February 10 time limit earlier fixed by the apex bank for the currency swap.
Findings by The PUNCH on Monday indicated that the banks refused to accept the old N1,000, N500 and N200 notes from depositors and point-of-service agents who flooded the bank to lodge their cash.
Point of service operators and other bank customers whose old naira notes were rejected, panicked as bank officials, who said they were acting on the Central Bank of Nigeria’s directive, remained adamant.
Also, lawyers and litigants at high courts in Lagos State were unable to file their court processes using the old naira notes for payment.
As the naira crisis worsened, the CBN Governor, Godwin Emefiele, again met with President Muhammadu Buhari at the Presidential Villa on Monday.
Emefiele, who had met with the President about six times since the naira crisis started, failed to address correspondents as he reportedly left the villa through a side entrance.
The governments of Kaduna, Kogi and Zamfara states on February 8 secured the order of the apex court extending the deadline beyond last Friday stipulated by the CBN for the use of the old notes.
