The Federal Government seeks to borrow N2.5 trillion from its second FGN bond auction of 2024, according to the latest circular from the Debt Management Office (DMO).

According to the circular seen by Nairametrics, the auction is set for February 19, 2024, with the settlement date being February 21, 2024.

In the previous month, the DMO offered four bonds worth N90 billion each. The February auction appears to the first time the Federal Government is borrowing over a trillion through a single bond.

Details of the February Bond offer
The bond offerings are:

N1,250,000,000,000.00 – FGN FEB 2031 (7-Yr NEW)
N1,250,000,000,000.00 – FGN FEB 2034 (10-Yr NEW)
While the first is expected to mature in seven years, the second will mature in 10 years. They are both newly created bonds, and are offered at a unit price of N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000. Interest payments on FGN bonds are made semi-annually (twice a year).

About FGN Bonds
The FGN bonds meet the criteria outlined in the Trustee Investment Act, allowing trustees to invest in them. Additionally, they qualify as Government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), ensuring they are tax-exempt for Pension Funds and other investors.

After the bonds are auctioned in the primary market to the primary dealer market makers, the bonds are then listed on both the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, which are the secondary markets.

What you should know
In 2023, the Federal Government raised about N5.49 trillion through FGN bond auctions which were used to finance the 2023 budget deficit of N11.34 trillion.

In January, the Federal Government raised about N418.197 billion from the four bonds that were auctioned.

With the budget deficit in the 2024 budget put at N9.18 trillion, the Federal Government seems committed to borrowing more from the domestic market.

https://www.google.com/amp/s/nairametrics.com/2024/02/14/fg-hopes-to-borrow-n2-5-trillion-from-fgn-bond-auction-in-february/%3famp=1

If coupon rate is less than 35% it is not worth it.
Naira has lost over 700% and it is still losing. So, when you factor in currency risks plus inflation that is now out of control, an annual return of 50% is advisable. However on patriotic note, I will subscribe at 35% to keep Tinubu afloat.

May god help us

Borrow borrow...

I go come carry my hard-earned money lend to kleptos for 7-10 years when I'm not sure Nigeria will exist into 2025? Who I go hold to pay me back my money should anything happen?

God forbid.

If the return is at least 20%, the bonds should sell very well.

A lot of people have billions sitting in banks doing nothing, and they don't necessarily need the money now. Getting a guaranteed 20% per annum may be attractive to them. Not everyone is interested in calling mallam's to change billions into dollars.

Also, because inflation is around 30% today doesn't mean it will always be at that level or higher during the 7 year term of the bond. It may come down significantly.

Equally, most businesses don't earn guaranteed annual net profit of 30% 40% or above. Some do, but not all. In the current economic climate, running a business profitably is very challenging

Some people have money but don't want the extreme hassle of running a business in Nigeria. For these sets of people, a 20% net annual profit for lending that money to the Federal government is an attractive proposition.

gaby:
Borrow borrow...

I go come carry my hard-earned money lend to kleptos for 7-10 years when I'm not sure Nigeria will exist into 2025?

God forbid.

It is a good strategy for the government.

Part of the reasons for the current high inflation is that Mr Buhari's government printed way too much naira.

The current government has been trying to get some of the excess naira liquidity out of the system.

One smart way of doing it is through the issuance of long term bonds. The money that individuals, companies, financial institutions, pension companies and foreign investors use to buy the bonds will be taken out of their bank accounts, thus reducing the amount of naira in the system.

As more of that liquidity is taken out of the system, it will help to bring down the rate of inflation.

The government has to use several tools to combat inflation. Issuance of long term bonds is one of them.

DeLaRue:


It is a good strategy for the government.

Part of the reasons for the current high inflation is that Mr Buhari's government printed way too much naira.

The current government has been trying to get some of the excess naira liquidity out of the system.

One smart way of doing it is through the issuance of long term bonds. The money that individuals, companies, financial institutions, pension companies and foreign investors use to buy the bonds will be taken out of their bank accounts, thus reducing the amount of naira in the system.

As more of that liquidity is taken out of the system, it will help to bring down the rate of inflation.

The government has to use several tools to combat inflation. Issuance of long term bonds is one of them.

Okay, sir, thank you.

Please, excuse me sir, how about the ones loaded in bullion vans and empty houses by the same issuers of the long-term bonds, why aren't they dumping their loot for the bonds?

I hope you understand what leading by example means. Or is it that their Nairas have been redenominated in foreign currencies?

Just 10 of the rogues currently in power and the previous administrations will solve this economic quagmire if this was indeed feasible and what truly ails the country and her economy.

They should get patriotic and lead by example.

Heck, even just the President and his son can solve this if they got patriotic enough to dump their loots from the banking system.
Circus..

.

They keep borrowing trillions of naira in bond, to put unborn Nigerians in bondage.

If the CBN (ways and means) does not purchase any bonds, we will be safe.

There is an imminent crisis coming and it worries me. Tinubu has to take charge before muslim fasting commences. I see the north starting a major uprising then. what could fuel this crisis is the increment in Electricity, Gas and PETROL.
Things are quite expensive and there is serious hardship in the land. Also if i where the president i will limit external travels. A coup could occur with the loud support of the north and silent support of the East. Wahala dey come ooo. DSS take note

Borrow borrow government.

Yorubads are technocrats, I don dey see am. All they know is to be doing try your luck, if it works fine if e nor work fine.

Be using people and Nigeria economy as lab rat.

When tribalism rules over a competent.

This is what happens to a stubborn fly.

Na wa o

APC borrow pose government…

A

Nice one 😂

This is just too funny

This government is favouring me and my family

I think its high time the immunity clause for principal executive political officers got revoked for the good of the nation.

Buhari used his office and position to plunge this country into debts with nothing to show for it, yet he is a free man today.

Bulaba has continued from where he stopped, feeding his political friends and hangers on with our commonwealth and no one dares call him to order.

An executive officer who authorises or endorses actions and decisions that prove inimical to the well-being of the populace should be prosecuted and halted while still in office.

The president should be sued in his own right.

A nice move 🔥

Tinubu is doing a good job on the economy,
Likewise Shettima on security!

On your mandate we shall stand
On your mandate we shall stand

which type of cement tinubu used in building Lagos ?is he not the first class graduate again,does it mean all this noise from touts and agberos are just to put their chairman to rule and nothing else .well any plan to remove tinubu 🔥 fire,this dollar must hit 5000 in his first tenure then second tenure it must hit 10000.after then maybe the number of touts and agberos must have reduced

Sultan of sokoto is right TINUBU IS THE CONTINUATION OF BUHARI.

The system is dead, let's face it.

The rulers have no idea (no matter how little it is) to inject into the system.

The rulers thinking say it's still business as usual still borrow and loot, borrow and loot and the circle continues.

The law breakers walk free after breaking the law with at least no minimum punishment melted to the law breakers as a deterrent to those who might think of breaking the law.

The looters loot and walk away free and the system celebrate them there by encouraging others to loot on a given opportunity.


To cap it all, the followers are more bigger problem for keeping mute while impunity goes on and on. Because of ethnicity, religion, ignorance, poverty, greed, the masses fail to be on the tails of the rulers.

I'm not a prophet of doom but let's face the fact, with these attitudes exhibited by the rulers and the masses, this country (Nigeria) will never work. The earlier we recognise the the truth and embrace it the better for us.

NB: Tinubu government is not a popular one and should have traded carefully when dishing out policies because since it's not a popular government, people will help him to fail.

Bond..... Bondage..... Hahaha

Thank God say I don chop this morning. Lovebite and hot Akara....

Till evening... Dinner and sleep

Borrow borrow government.

Borrow money, then loot it with the help of your cronies then lavish it on oloshos and buy personal properties abroad.

Tinubu will handle economy
Shettima will handle security

Daft people in power