Government Borrowing Squeezes Nigeria's Private Credit Market
Nigeria’s tilting dependence on domestic borrowing is creating an increasing contest for bank credit, raising anxieties that government’s capacity to offer attractive yields on its securities could inhibit the flow of affordable credit
Nigeria's government is increasingly relying on domestic borrowing, which is intensifying competition for bank credit as banks emerge from a major recapitalisation exercise. The concern is that attractive yields on government securities could draw lending away from businesses and households, limiting access to affordable credit.
Filed Under
What did you make of this
Sign in to react and save stories. Reading is always free.
Be the first to comment
Sign in to join the conversation. Reading is always free.
Related Reports & Analysis
Nigeria raises ₦729bn bond to tackle power sector debt
The Federal Government has raised ₦728.9 billion through the Series 2 issuance under its ₦4 trillion Power Sector Multi-Instrument Issuance Programme, bringing the total raised under the debt reduction programme to more than ₦1.1 tril
Nigeria Rejoins J.P. Morgan Global Bond Index After 11 Years
Nigeria’s inclusion in a J.P. Morgan global bond index is expected to attract about $17.5 billion into the country’s debt market and lower bond yields by up to 200 basis points. The post Nigeria rejoins J.P. Morgan Global Bond Index aft
FG raises N1.23 trillion to tackle N4 trillion GenCo debt
The Federal Government has raised about N1.23 trillion through two bond issuances under its power sector debt reduction programme, as it moves to settle about N4 trillion in legacy obligations owed to electricity Generation Companies (GenCo
FCMB Capital Markets Backs BOI's ₦274.19 Billion Development Bond
FCMB Capital Markets Limited acted as a Joint Issuing House and Bookrunner on the ₦274.19 billion Series 1 Development Bond issued by the Bank of Industry (BOI), one of the largest sub-sovereign bond issuances through the Nigerian capital