So, the Senate a fortnight ago gave its approval to the $5.5 billion loan requested by the federal government.

The government said it needs the loan to support the 2018 budget implementation and to service debts.

The Debt Management Office, DMO that oversees raising government debt has said the loan won’t be taken out at once.

The DMO explained on Wednesday that the loan will not be raised in a single tranche despite the thirst for it in the market to moderate cost.

Also Read: 3 Things To Know About $5.5 Billion Loan Approved By Senate

The Director-General of DMO, Patience Oniha, who said this in an interview with journalists in Abuja, said the intention of the government is not to raise the $5.5 billion naira at once but to get the $2.5 billion naira required to support the 2017 budget first.

Later on, the $3 billion required to refinance local debts would be raised in phases.

She also stated that the oversubscription of the $3 billion Eurobond recently issued by the Federal Government is confirmation that foreign investors are interested in Nigeria.

This could be true as the Eurobond issue recorded about 366.67% subscription as foreign investors staked $11 billion on it – when only 3 billion dollars were on offer. 

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