In its FY 2023 budget proposal, the Federal Government plans to raise new loans worth N9.32 billion: N7.4 trillion from domestic sources and N1.8 trillion from foreign sources.

Announcing the plans yesterday to an offer circular released by the DMO—the agency said it will auction N360 billion worth of FGN bonds. The auction will open on April 17, 2023 and settlement is scheduled for April 19th.

The bonds to be auctioned are: 13.98% FGN FEB 2028 (10-Yr Re-opening)-N90 billion; 12.50% FGN APR 2032 (10-Yr Re-opening)-N90 billion; 13.00% FGN JAN 2042 (20-Yr Re-opening)-N90 billion; and 12.98% FGN MAR 2050 (30-Yr Re-opening)-N90 billion.

The DMO sold N563.4 billion worth of bonds last month, following 125% oversubscription to the government's offering of N360 billion worth FGN bonds—which saw total subscriptions reach a staggering level (N808.6billion).

Analysts expect that the oversubscription for FGN bonds auction in April will be strong, citing a high demand for government securities and other fixed-income investment options prompted by CBN’s efforts to curb inflation.

Reflecting this trend, Pension Fund Administrators, PFAs, increased pension fund investment in Federal Government debt instruments (securities) by 16.5 per cent, year-on-year to N9.9 trillion in February from N8.5 trillion in 2022.