Nigerian government has swung into action to reduce its borrowing costs this year.

First, it would borrow $2.5 billion, about 762.5 billion Naira from Europe (Eurobond sale) and then use the money to pay back debt raised through treasury bills worth the same sum, $2.5 billion.

This was disclosed by the Finance Minister, Kemi Adeosun on Wednesday.

Adeosun told reporters that Nigeria expects to save 64 billion Naira each year by following that option of refinancing where money borrowed from overseas is used to settle debt raised in Nigeria.

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The head of Debt Management Office, DMO, Patience Oniha had hinted on this earlier in January, that the government would consider raising $2.5 billion through Eurobonds in the first quarter to refinance a portion of its domestic treasury bill portfolio at lower cost.

The government wants to refinance $3 billion worth of a local treasury bill portfolio of 2.7 trillion Naira.

It sold $3 billion in Eurobonds in November, part of which it used to fund its 2017 budget, and then paid off 198 billion Naira in treasury bills in December.

As for the new Eurobond sale, Adeosun said the Federal Executive Council meeting reappointed the banks that handled the previous eurobond sale - Citigroup, Stanbic IBTC Bank and Standard Chartered Bank – to manage the transaction.

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