Nigeria has redeemed a $500m Eurobond, which matured on July 12, 2023, according to the Debt Management Office.

In a statement published on its website, the DMO said that the bond was issued on July 2013 for a tenor of 10 years at a coupon of 6.375 per cent annually.

The statement read in part, “Nigeria re-affirms its commitment to meeting its debt service obligations as it redeems a $500m Eurobond on its due date on July 12, 2023.

“The Eurobond was issued in July 2013 (as part of a dual-tranche USD1 billion Eurobond) for a tenor of 10 years at a coupon of 6.375 per cent annum.”

The DMO also assured bond investors of Nigeria’s commitment to honouring its debt obligation.

“Nigeria’s successful redemption of its Eurobonds and diaspora bond in the ICM over the past six years is a demonstration of its strong debt management operations and planning,” the statement added.

It was further disclosed that Nigeria had previously redeemed a $500m Eurobond in July 2018, another $500m Eurobond in January 2021, and a 300m diaspora bond in June 2022.

These, alongside the $500m Eurobond redeemed, brought the total amount of securities redeemed by Nigeria in the international capital market to $1.8bn.

The PUNCH observed that as of March 2023, Nigeria had a Eurobond debt of $15.62bn.

There had been rising concerns over the low revenue generation of the Federal Government.

The revenue shortfalls echoed concerns by the former Minister of Finance, Budget, and National Planning, Zainab Ahmed, over the government’s inability to generate adequate revenue.

Nigeria relied on oil for the majority of its revenue, and in recent times, this revenue source had been impacted by low production and subsidy payment, which was recently removed.

While speaking about the implementation of the 2022 budget, Ahmed said, “Revenue generation remains the major fiscal constraint of the federation.”

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