Amaka Obiefuna.

The Nigerian Government has attributed the delay in raising one billion dollars Eurobond to fund the 2016 budget to late implementation of the 2016 budget.

The Ministry of Finance in a statement said that the 2016 budget spending cycle had been extended to the end of March 2017 to accommodate the lateness.

The Government recently announced its newly established one billion dollars Global Medium Term Note programme.

The Notes will bear interest at a rate of 7.875 per cent and will mature on Feb. 16, 2032 with a bullet repayment of the principal.

The government intends to use the proceeds of the Notes to fund capital expenditures in the 2016 budget.

The Notes represent the country’s third Eurobond issuance, following issuances in 2011 and 2013.

The Notes were approximately 8 times oversubscribed with orders in excess of 7.8 billion dollars compared to a pre-issuance target of one billion dollars demonstrating strong market appetite for Nigeria.

The Minister of Finance, Mrs Kemi Adeosun said the Eurobond that was secured this week and the AfDB, secured late 2016, would continue to be used to fund capital projects identified in the 2016 budget.

“The government’s debt strategy has been well defined and approved by the National Assembly.