Many Nigerians wait for Credit Alert as Federal Government prepares to refund N605bn Debt Owed to Citizens
- The Federal government of Nigeria is set to begin repayment of N650 billion matured debt which is in form of bond
- Bond is an instrument of indebtedness, under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to pay them interest
- One of the bonds announced for subscription from citizens by the Debt Management office matured date is in January 2022
The Federal government is set to reward citizens who have committed their funds to its hands this month.
According to a report from Dailytrust, bond investors may receive N605 billion in repayment of the principal amount and last coupon on maturing Federal Government of Nigeria (FGN) Bonds before the end of January 2022.
If the payment is initiated, Nigeria's domestic debt stock may drop to N17.627tr, about 4 per cent from N22.431 trillion it stands as of September 30, 2021.
Source: Facebook
What do FGN bonds mean?
FGN Bonds are debt securities (liabilities) of the Federal Government of Nigeria (FGN) issued by the Debt Management Office (DMO) for and on behalf of the Federal Government.
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The FGN has an obligation to pay the bondholder the principal and agreed interest as and when due.
When you buy FGN Bonds, you are lending to the FGN for a specified period of time. The FGN Bonds are considered the safest of all investments in the domestic debt market because it is backed by the ‘full faith and credit’ of the Federal Government, and as such is classified as a risk-free debt instrument.
Nigeria's debt stock
According to data from the Debt Management Office (DMO), Nigeria’s total debt stock as of 30th September 2021 was N38.004 trillion or $92.626bn which comprised the external debt stock of the federal government, 36 state governments and the Federal Capital Territory.
Railway, satellite lead list of 15 projects Nigeria agreed N2.50trn loan with China
Meanwhile, Legit.ng the Debt Management Office (DMO) has announced Nigeria's overall public debt has risen to N38 trillion as of September 30, 2021.
The loan from China is one area many Nigerians are interested in amid stories of assets being seized from nations unable to repay their debt.
DMO has now released a thorough analysis of loans received from China in the last 13 years, including how much has been returned and for what projects the funds were obtained.
Source: Legit.ng
