The Federal Government borrowed $300m from Nigerians in the Diaspora before it secured the approval of the National Assembly, the Debt Management Office indicated on Wednesday.
The DMO gave this indication in a response to an enquiry by a non-governmental organisation, Social Action Nigeria. Social Action Nigeria had in a letter written to the DMO on November 24, 2017, demanded to know what uses the Federal Government intended to put the $5.5bn it planned to borrow from external creditors as well as the terms of the loans.
In a response signed by the Director-General, DMO, Ms. Patience Oniha, and dated November 29, 2017, the agency explained that the $300m it had borrowed from Nigerians in the Diaspora was part of the $5.5bn approved for borrowing by the National Assembly.
While the approval was given on November 14, 2017, the $300m was raised in June 2017 through the issuance of the Diaspora Bond.
On the conditions for the loans already secured, the DMO said the 10-year $1.5bn Eurobond maturing in 2027 carried an interest rate of 6.5 per cent, while a 30-year $1.5bn Eurobond maturing in 2047 carried an interest rate of 7.625 per cent.
From Punch
In a response signed by the Director-General, DMO, Ms. Patience Oniha, and dated November 29, 2017, the agency explained that the $300m it had borrowed from Nigerians in the Diaspora was part of the $5.5bn approved for borrowing by the National Assembly.
While the approval was given on November 14, 2017, the $300m was raised in June 2017 through the issuance of the Diaspora Bond.
On the conditions for the loans already secured, the DMO said the 10-year $1.5bn Eurobond maturing in 2027 carried an interest rate of 6.5 per cent, while a 30-year $1.5bn Eurobond maturing in 2047 carried an interest rate of 7.625 per cent.
From Punch
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