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Tinubu to Start Loan Repayment of $500 Million Eurobond Debt in Jul
President Bola Tinubu’s government will go on its first debt-servicing operation this July to redeem a $500 million Eurobond.
Records from Debt Management Office shows that a $500 million Eurobond loan is due for repayment this month in accordance with its terms.
According to Nairametric, Nigeria may have paid the bond or planned repayment for July 2023. Eurobonds are typically repaid using Nigeria’s external reserves or through specific funds set up for external bond repayments.
While this gives the Tinubu administration a cash flow breather it still portends an economic challenge in the coming years if the country does not sort out its debt challenges.
In a report, the total public debt rose by fiat to N82 trillion following the unification of the naira. It was N73 trillion before the unification.
Nigeria’s total Eurobond obligation is estimated at $10.7 billion and with different maturities. Naira-denominated debts are about N53 trillion half of which is the central bank’s Ways and Means loan extension to the government.
Experts opine the country is unlikely to seek further Eurobonds and global economic conditions for foreign currency borrowings remain challenging.
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