•CBN to reposition insurance industry by 2020
By Chinwendu Obienyi
Nigeria’s Debt Management Office (DMO) opened bidding on Monday for its new two-year savings bond targeted at retail investors with a coupon of 13.01 per cent.
The DMO said the savings bond will help broaden the country’s funding base and would be available for purchase on a monthly basis with a maximum subscription of N50 million.
The bond will pay interest quarterly with a bullet repayment for principal at maturity. The initial offer will close on March 17, the DMO said.
Nigeria forecasts it will have a budget deficit of N2.36 trillion in 2017, half of which it aims to fund through domestic borrowing.
Outstanding local debt rose to N13.88 trillion last year from N8.83 trillion in 2015 and is set to increase further, as Africa’s biggest economy grapples with its first recession in a quarter of century, caused by low oil prices.
The government has said it will raise N130 billion at its third domestic debt sale this year on March 15 and sell N1.13 trillion worth of treasury bills by the second quarter.
Nigeria issued a $1 billion eurobond last month and is now seeking approval from the National Assembly for an additional $500 million eurobond. It also plans to offer a N20 billion “green bond” in April.
Meanwhile, the Central Bank of Nigeria (CBN) has disclosed that it plans to position the Nigerian insurance industry among the largest countries in the world by 2020.
The apex bank said a lot of transformation was going on in the sector, as enshrined in its Financial System Stability 2020 (FSS 2020) aimed at revamping the sector, adding that it is collaborating with the Insurance Commission to achieve the feat.