The Nigerian government has issued domestic bonds to refinance a debt of 4,900 billion nairas (equivalent to $3.4 billion) owed to the Central Bank. The information was relayed yesterday by Bloomberg, which cited Patience Oniha, the Director of the Debt Management Office.

According to Mrs. Oniha, these bonds were issued between February and April to spread out the repayment burden of the domestic debt over time. Last December, the Nigerian Parliament approved a request by President Bola Tinubu to convert 7,500 billion nairas of state debt owed to the Central Bank into bonds with longer maturities.

During the tenure of former President Muhammadu Buhari, Nigeria disregarded rules limiting the financing of the state budget by the Central Bank, leading to a surge in debt.

As of December 31, 2023, the country's public debt stood at 97,341 billion nairas ($108.2 billion), marking a 5% increase compared to the same period in 2022, according to data released last March by the Debt Management Office. This increase is primarily attributed to a 6% rise in domestic borrowing, which accounts for 61% of the total public debt.