Echotitbits – Nigeria News

Tag: public debt

  • DMO raises about ₦1.1tn at first 2026 T-bills auction as stop rates rise

    DMO raises about ₦1.1tn at first 2026 T-bills auction as stop rates rise

    According to The Guardian Nigeria, the Debt Management Office secured about ₦1.144 trillion at its first Nigerian Treasury Bills auction of 2026, with stop rates climbing across all maturities.

    The report notes the 364-day paper dominated the auction and the stop rate for the one-year tenor rose sharply, reflecting investor demand for higher yields in a high-rate, high-inflation environment.

    For households and corporates, higher T-bill yields can improve returns on risk-free assets, but they can also raise government debt-service costs and crowd out private-sector borrowing.

    Market watchers will be tracking whether rates stabilise or rise further, and how monetary policy signals influence the next auction rounds.

    Echotitbits take: Elevated T-bill yields are a double-edged sword—great for savers, tough for fiscal space. Watch the CBN’s liquidity stance and whether banks reprice loans upward in response.

    Source: The Guardian Nigeria – https://guardian.ng/news/fg-raises-n1-1tr-from-first-2026-treasury-bills-auction/ 9 January 2026

    The Guardian Nigeria 2026-01-09

    Photo Credit: The Guardian Nigeria

  • FG projects ₦33.39tn revenue and ₦15.91tn debt service for 2026 fiscal year

    FG projects ₦33.39tn revenue and ₦15.91tn debt service for 2026 fiscal year

    In a report by The Nation, the Federal Government’s 2026 Appropriation Bill projects about ₦33.39 trillion in revenue and sets aside roughly ₦15.91 trillion for debt servicing, highlighting the scale of fiscal pressure.

    The story breaks down projected revenue sources and explains that domestic debt service—often including Central Bank financing—remains a major budget burden.

    Economists warn that a heavy debt-service line can shrink space for infrastructure and social spending, unless revenue performance improves and borrowing costs fall.

    The debate in the National Assembly is expected to focus on realism of revenue assumptions and strategies to reduce recurrent costs and improve tax efficiency without harming growth.

    Echotitbits take: Nigeria’s fiscal stress is now structural: debt service competes with everything. Watch for credible revenue reforms and whether debt management reduces cost, not just raises more borrowing.

    Source: The Nation https://thenationonlineng.net/fg-targets-%E2%82%A633-39trn-revenue-sets-aside-%E2%82%A615-91trn-for-debt-service-in-2026/ 11 January 2026

    The Nation 2026-01-11

    Photo Credit: The Nation

  • FAAC windfall helps states cut bank exposure by over ₦547bn in one year

    FAAC windfall helps states cut bank exposure by over ₦547bn in one year

    Photo Credit: The Punch
    2025-12-27 06:00:00

    In a review published by Punch, Nigerian states and local governments reportedly reduced bank borrowing by about ₦547.5bn over the past year as federation revenue inflows improved.

    The story suggests higher allocations gave some subnational governments room to refinance or repay costly short‑term facilities, easing pressure on monthly deductions and debt‑service burdens.

    However, analysts note that debt reduction is only durable if states also strengthen internally generated revenue and curb recurrent leakages, especially as oil‑linked inflows remain volatile.

    Echotitbits take:
    This is a rare “good-news” fiscal signal, but it can reverse fast if FAAC cools or spending balloons. Watch the next quarter’s allocations, states’ IGR trends, and whether repayment coincides with better capital spending rather than fresh borrowing.

    Source: The Punch — December 27, 2025 (https://punchng.com/states-lgs-repay-n547-5bn-bank-debts/)
    The Punch December 27, 2025

  • FG’s ₦4tn Power Bond to Be Captured in MTEF

    The Federal Government says its ₦4tn power-sector liquidity bond will be fully reflected in the Medium-Term Expenditure Framework, increasing public debt but assuring investors of sovereign backing. The bond aims to clear long-standing debts to GenCos.

    PUNCH

    11 Dec 2025