Statisticians estimate that the Nigerian government borrowed a total of 4.2 Trillion in the past six months (H1’22).
NewsReport gathered that the alleged monies were collected from local investors.
This reflects an increase of N3.89 trillion, or 21%, year over year (YoY), from the amount borrowed in the first half of 2021 (H1’21).
According to the economic report for the first half of the year, the administration’s increased borrowing was fuelled by sales of FGN bonds that were up 30%, savings bonds that were up 49%, and Nigeria Treasury Bills that were up roughly 14%.
Findings from bond auctions results revealed that the amount of FGN bonds sold in H1’22, rose to N1.84 trillion from N1.42 trillion in H1’21, representing a 30 per cent, YoY increase.
Further analysis as revealed in a report sighted by Vanguard, showed that the amounts of FGN bonds offered by the Debt Management Office, DMO, rose by 25 per cent YoY to N1.13 trillion in H1’22 from N900 billion in H1’21.
Meanwhile, total subscriptions representing demand by investors reportedly rose by 69 per cent YoY to N3.02 trillion in H1’22 from N1.79 trillion in H1’21.
The reported figures resulted in 168 per cent oversubscription up from 99 per cent recorded in H1’21. Total allotment rose by 38 per cent to N1.56 trillion in H1’22 from N1.12 trillion in H1’21.
During the period under review, the DMO sold two tenors of FGN Bonds namely 10-years bonds and 20-years bonds.
The DMO offered N675 billion worth of 10-years bonds which attracted public subscription of N1.312 trillion, resulting in 94 per cent over subscription, while the total amount sold stood at N919.45 trillion.
Also, the DMO offered N450 billion worth of 20-years bonds which attracted a public subscription of N1.71 trillion resulting in an oversubscription of 280 per cent while the amount sold stood at N916.31 billion.
According to the data, the quarterly results of FGN bond auctions showed a rising trend in the amount offered by the DMO and demand by the investing public.
The total amount of bonds offered rose in the second quarter Q2’22 by 33 per cent, quarter-on-quarter, QoQ, to N675 billion from N450 billion in Q1’22.
Also, total public subscriptions rose by 3.8 per cent QoQ to N1.64 trillion in Q2’22 from N148 trillion in Q1’21, resulting in oversubscription of 128 per cent down from 229 per cent in Q1’21. Total sales rose by 7.9 per cent QoQ to N952.7 billion in Q2’22 from N883.1 billion in Q’22.
The amount of 10-years FGN bonds offered by the DMO in Q2’22 rose by 100 per cent, QoQ to N450 billion from N225 billion in Q1’22 but total public subscription dropped by 3.5 per cent QoQ to N644.5 billion resulting 43 per cent oversubscription, down from 197 per cent in Q1’21.
While the DMO offered N225 billion worth of 20-years bonds in Q2’22, same as in and Q1’22, it however reduced the amount sold by 24 per cent to N396 billion from N520.31 billion in Q1’22. This was in spite of a 9.8 per cent increase in total public subscription to N892.9 billion in Q2’22 from N813 billion in Q1’22.