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Nigeria to Convert $25 Billion CBN Financing to 30-Year Debt

  • Govt seeks two-year moratorium on repayments to central bank
  • Conversion creates transparency on government’s CBN overdraft
Updated on

Nigeria’s federal government has set the terms for the conversion of its stock of central bank overdrafts into long-term notes in a bid to create transparency around its dependence on that source of funding.

The 10 trillion naira ($25.6 billion) debt will be exchanged for 30-year notes issued to the central bank, Patience Oniha, head of the Debt Management Office said by email. The agreement on timing for the conversion needs to be finalized to get the required approval from the cabinet, at the earliest in the second quarter, Oniha said.