(Ecofin Agency) - Nigeria will raise between $1.18billion and $1.48 bln from the sale of a 5 and 20-year sovereign bond in the third quarter of 2017, according to the Debt Management Office (DMO).

The debt office on Wednesday said it will auction a N90-120 billion in five-year note and a N135-165 billion in 10 and 20-year debt between July and September. The issuing of bond is part of the government’s strategy to plug its budget deficit for the year.

Indeed, due to a plunge in the prices of oil from which Nigeria gets most of its revenues, the country slumped last year into its first recession in 25 years. As a result, a budget deficit of N2.36 trillion ($7.5billion) was forecast for this year. To bridge this deficit and bring the economy back on its feet, the government said it will rely mostly on the domestic debt market.

Anita Fatunji