The Federal Government plans to raise N70 billion ($222 million) via a sovereign bond sale next week, the Debt Management Office (DMO) said yesterday, less than it has sold at previous auctions.

The DMO said it would issue a five-year bond to raise N10 billion, and sell 10-year paper to fetch N30 billion, using the Dutch auction system on March 21.

It plans to introduce a new seven-year note to raise another N30 billion, it said in a bond notice. The result of the auction is expected on March 23, the DMO said. Nigeria has been working to lower costs, particularly as inflation fell for the 12th time in a row in January.

The DMO has paid off a portion of the government’s maturing treasury bills instead of rolling over the debt as it has done in the past and plans to cut the amount it raises at home from future auctions. However, it is boosting dollar loans and wants to increase its foreign debt holding to 40 per cent of total loans by 2019 from 27 per cent now.

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