Tuesday, March 20, 2018 09:01 AM / FBNQuest Research
FGN’s external debt obligations at end-December amounted to US$18.91bn,
equivalent to 5.1% of 2017 GDP. This includes the external borrowings of the
state governments, which are necessarily guaranteed by the FGN. The rise over
the previous quarter was US$3.56bn, dominated by the Eurobond issue of
US$3.00bn in November.
also note increases in exposure of US$200m to the African Development Bank
group, US$130m to the World Bank group and US$130m to Exim Bank of China.
Nigeria’s traditional partners are still disbursing funds.
The profile of the FGN’s external debt is
changing, however. Commercial borrowings (Eurobonds and the small diaspora
issue) now account for one-third of the total, compared with 21.5% in September
2017 and 14.0% in December 2015. The weaker exchange rate has been an
At the same time, the share of World Bank
group loans has declined to 42.5% from 51.5% in September and 58.7% in December
2015. There are implications for external debt servicing costs, which we will
quantify in one of our dailies shortly.
The maturities of the FGN’s Eurobonds do
not exactly match those of its naira bond issuance but we can say that the
rates for its external borrowing are at least 650bps cheaper.
The DMO has a medium-term target for a
60/40 split of domestic and external obligations in what it terms Nigeria’s
public debt: the domestic and external debt stock of the FGN and the state
governments combined. At end-December, the ratio stood at 73/27 but is moving
in the desired direction thanks to the latest Eurobond issue last month.
- Bond Yields Stay Flat as CBN Resumes OMO
- Pan African Local Currency Government Debt-
African Domestic Bond Fund (ADBF)
- Developing African Bond Market
- Debt Management Strategies Reduce Interest Expense
- Sustained Bullish Trend to Push Rates Lower as
PMA Holds on Wednesday; Indicative Rates
- Total Public Debt as at December 31, 2017
Represents 18.20% of Nigeria’s GDP for 2017 - DMO
- The Mark of Externalisation in the DMO’s Data
- Bond Yields Taper as CBN holds off on OMO
- Markets Turns Bearish as CBN Sells N443bn OMO
- Invest in FGN Monthly Bond Auction – March 2018
- PMA Rates slide lower with Demand concentrated
on the 1yr