So, on Wednesday, the federal government approached the debt market through the FGN bonds.

It planned to borrow 90 billion naira but there were more investors willing to lend government money.

So, it ended up raising more than a 100 billion naira.

According to the Debt Management Office, investors oversubscribed the offer by more than 10 billion naira.

Over 100 billion naira raised at the offer would go into financing the 2018 budget.

The DMO said: “The FGN Bond Auction for August 2018, which was conducted by the DMO on Wednesday at which 90 billion-naira bonds were offered in three tenors – five years, seven years and 10 years – was oversubscribed.

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“The total subscriptions received from bidders at the auction were above 100 billion naira. Allotments were made to successful bidders at 14.39% for the five-year, 14.6% for the seven-year and 14.69% for the 10-year bond, which are consistent with the rates in the secondary market for the bonds offered at the auction.

“A total of 100.09 billion naira was allotted to competitive and non-competitive bidders at the auction and the proceeds will provide additional financing for the implementation of the 2018 Appropriation Act.”

The DMO had on Tuesday announced that it had already raised 410 billion naira for the financing of the 2018 budget through the domestic debt market.

With the latest announcement, the office has now raised more than 500 billion naira for the 2018 budget through the local debt market.

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