Unic Press UK: Given that the debt-service costs has been very high, the Nigerian government seems to be moving towards concessional lenders – the World Bank and the African Development Bank – for its immediate liability generation plans, the Bloomberg reports Monday, quoting the Debt Management Office (DMO).
“If you were to ask me if we’re going to issue Eurobonds this year, I’d say we’ll explore all the options. Our preferred option is to explore concessional sources. One of our major objectives is to reduce debt-service costs. The debt service-to-revenue ratio is rising. We’re not sitting and saying we’re comfortable. Part of the reason for borrowing externally is to borrow at 8 percent rather than 18 percent. It’s cheaper. And we’re assuming the naira will be stable,” the country’s head of the Debt Management Office (DMO) Patience Oniha said during an interview Tuesday in Abuja.
President Muhammadu Buhari signed the budget for the 2018 fiscal year in June 2018; almost six months late. The budget for 2019 is still being considered by the National Assembly.