Nigeria’s govt to use $2.2bn eurobond, borrow more to fund fuel subsidy

The federal government of Nigeria has said it will use $2.2 billion of the fund raised via eurobond to cater for petrol under-recovery costs.

In addition, the government said it would target more local borrowing in 2022 to fund subsidy payments.

Recall that in September 2021, Nigeria raised $4 billion through eurobond issuance.

Zainab Ahmed, minister of finance, budget, national planning, who disclosed this while speaking with Reuters on the sidelines of an Arab-African conference in Cairo, said Nigeria would not tap the eurobond market this year.

“Rising oil prices have put us in a very precarious position, because we import refined products, and it means that our subsidy cost is increasing,” she said.

Ahmed said that the government was working with lawmakers to boost revenues and that the rise in oil prices means that borrowings will increase more than planned.