(Ecofin Agency) - The Nigerian Debt Management Office (DMO), on Wednesday, revealed plans to auction N140 billion ($446 million) in bonds on May 10, 2017.

Using a Dutch auction system, DMO intends to auction N40 billion bonds which would mature in 2021 and two N50 billion bonds due in 2027 and 2037. They are expected to be settled the following day after the sale.

Nigeria issues sovereign bonds on a monthly basis to fund its budget deficit, support local debt market and set a benchmark for companies to follow. The country at the last naira bond auction sold less bonds than it initially planned following demands by investors for higher returns to make up for inflation.

The West African country anticipates a N2.36 trillion ($7.5 billion) budget deficit this year, which it plans to finance through local borrowing.

Anita Fatunji