Economy
Borrowing from IMF Politically Unacceptable to FG—FBNQuest
By Modupe Gbadeyanka
Analysts at FBNQuest have said commented on the recent sale of Nigeria’s first diaspora bond on the international capital market by the Debt Management Office (DMO).
It was learnt that the $300m issue, has a tenor of five years and pays a coupon of 5.625 percent, was oversubscribed by 130 percent.
The bond was approved both by the SEC in the US and the UK Listing Authority, though it has been on the drawing board for a few years.
However, the marketing channels have now been opened and the debt office has a formula that can be repeated.
According to a report by FBNQuest Research, the diaspora bond issue follows sales of Eurobonds this year to raise $1.5 billion.
The 2017 budget has an external financing target of N1.07 trillion or $3.5 billion at the assumed exchange rate of N305 per US dollar.
“It would appear that the DMO has already raised more than half the target for the year. However, the approved 2016 budget projected external financing of N640 billion or $3.2 billion at the assumed rate of N197.
“That rate was, of course, liberalized in June. The only financing secured in 2016 was a disbursement of $600 million by the African Development Bank.
“The authorities may consider the 2016 deficit financing chapter closed since the stock of outstanding FGN bonds last year increased by as much as N2.22 trillion,” the report said.
It added that, “This success in tapping the commercial market does not spare the FGN the ordeal of talks with the multilaterals.
“Borrowing from the IMF is unacceptable politically to a Nigerian government but the FGN needs to persuade the World Bank to disburse a budget loan.
“Whatever the sticking point, the exchange-rate regime perhaps, the authorities need to reach an agreement.”
The report stated that the growth in borrowing at commercial rates obviously brings increased servicing costs.
“However, we are talking of an increase from a low base. Our calculations suggest average FGN borrowing costs in 2016 of 2.1 percent for external obligations and 11.6 percent for domestic. (The latter will have since risen dramatically.)
“Projections by Fitch in its latest full rating report from March this year flag up the strength of Nigeria’s external balance sheet. It sees gross general government debt/GDP rising from 17.4 percent last year to 26.2 percent in 2026.
“Its sensitivity analysis of public debt points to a ratio above a still manageable 30 percent if the FGN is unable to reduce its primary budget deficit or suffers a rise of 250 bps in its servicing costs.
“The DMO has other initiatives in play to diversify funding sources. It is selling FGN savings bonds to retail, albeit with a slow start, and, together with the SEC in Abuja, is preparing for the country’s first sukuk (Islamic bond) in local currency” the report said.
By Aduragbemi Omiyale
The duo of Presco Plc and Guaranty Trust Holding Company (GTCO) Plc has listed additional shares on the Nigerian Exchange (NGX) Limited.
The extra equities of these two publicly-listed organisations were admitted to the local stock exchange last Friday, increasing their respective total issued and fully paid-up shares.
For Presco, it listed fresh 166,666,667 ordinary shares of 50 Kobo each on the daily official list of the NGX on Friday, January 30, 2026, increasing its total issued and fully paid-up stocks from 1,000,000,000 units to 1,166,666,667 units.
The additional equities were from the rights issue of the firm allotted to shareholders on the basis of one new share for every existing six ordinary shares held as at close of business on Monday, October 13, 2025.
In a circular issued over the weekend, the NGX said, “Trading licence holders are hereby notified that additional 166,666,667 ordinary shares of 50 Kobo each of Presco Plc were on Friday, January 30, 2026, listed on the daily official list of Nigerian Exchange (NGX) Limited (NGX).
“The additional shares arose from the company’s rights issue of 166,666,667 ordinary shares of 50 Kobo each at N1,420.00 per share on the basis of one new share for every existing six ordinary shares held as at close of business on Monday, October 13, 2025.
“With the listing of the additional 166,666,667 ordinary shares, the total issued and fully paid-up shares of Presco Plc has now increased from 1,000,000,000 to 1,166,666,667 ordinary shares of 50 Kobo each.”
As for GTCO, it listed additional125,000,000 ordinary shares of 50 Kobo each at N80.00 per unit offered through private placement.
The fresh equities taken to Customs Street have raised the total issued and fully paid-up shares of GTCO from 36,425,229,514 to 36,550,229,514 ordinary shares of 50 Kobo each.
By Adedapo Adesanya
A total of N1.969 trillion was shared to the federal government, the 36 state governments and the 774 local government councils from the gross revenue of N2.585 trillion generated by the nation in December 2025.
The money was disbursed to the three tiers of government at the January 2026 Federation Account Allocation Committee (FAAC) meeting held in Abuja.
In a statement issued on Monday by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation (OAGF), Mr Bawa Mokwa, it was stated that the FAAC allocation comprised statutory revenue of N1.084 trillion, distributable Value Added Tax (VAT) revenue of N846.507 billion, and Electronic Money Transfer Levy (EMTL) revenue of N38.110 billion.
“Total deduction for cost of collection was N104.697 billion, while total transfers, refunds, and savings were N511.585 billion,” the statement partly read.
It was also revealed that from the N1.969 trillion total distributable revenue, the federal Government received the sum of N653.500 billion, and the state governments received N706.469 billion, the local government councils received N513.272 billion, and the sum of N96.083 billion was shared with the benefiting state as 13 per cent derivation revenue.
He said of the N1.084 trillion distributable statutory revenue, the central government received N520.807 billion, the state governments got N264.160 billion, the local councils were given N203.656 billion, and N96.083 billion was shared to the benefiting states as 13 per cent derivation revenue.
FAAC noted that from the N846.507 billion distributable VAT earnings, the federal government got N126.976 billion, the state governments received N423.254 billion, and the local government councils got N296.277 billion.
From the revenue from EMTL, Mr Mokwa explained that the national government was given N5.717 billion, the state governments got N19.055 billion, and the councils collected N13.338 billion.
He added that the companies’ Income Tax (CIT)/CGT and STD, Import Duty and Value Added Tax (VAT) increased significantly in December, while oil and gas royalty, CET levies and fees increase marginally, with excise duty, Petroleum Profit Tax (PPT)/Hydrocarbon Tax (HT), and EMTL considerably down.
By Adedapo Adesanya
Nigeria’s oil exports will drop in February following the shutdown of the Bonga Floating Production Storage and Offloading (FPSO) vessel scheduled for turnaround maintenance.
Shell Nigeria Exploration and Production Company (SNEPCo) Limited confirmed the development in a statement issued, adding that gas output will also decline during the maintenance period.
This comes as SNEPCo begun turnaround maintenance on the Bonga FPSO, the statement signed by its Communications Manager, Mrs Gladys Afam-Anadu, said, describing the exercise as a statutory integrity assurance programme designed to extend the facility’s operational lifespan.
SNEPCo Managing Director, Mr Ronald Adams, said the maintenance would ensure safe, efficient operations for another 15 years.
“The scheduled maintenance is designed to reduce unplanned deferments and strengthen the asset’s overall resilience.
“We expect to resume operations in March following completion of the turnaround,” he said.
Mr Adams said the scope included inspections, certification, regulatory checks, integrity upgrades, engineering modifications and subsea assurance activities.
“The FPSO, about 120 kilometres offshore in over 1,000 metres of water, can produce 225,000 barrels of oil daily.
“It also produces 150 million standard cubic feet of gas per day,” he said.
He said maintaining the facility was critical to Nigeria’s production stability, energy security and revenue objectives.
Mr Adams noted that the 2024 Final Investment Decision on Bonga North increased the importance of the FPSO’s reliability. He said the turnaround would prepare the facility for additional volumes from the Bonga North subsea tie-back project.
According to him, the last turnaround maintenance was conducted in October 2022.
“On February 1, 2023, the asset produced its one billionth barrel since operations began in 2005,” Mr Adams said.
SNEPCo operates the Bonga field in partnership with Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited, under a Production Sharing Contract with the Nigerian National Petroleum Company (NNPC) Limited.
The last turnaround maintenance activity on the FPSO took place in October 2022. On February 1, the following year, the asset delivered its 1 billionth barrel of oil since production commenced in 2005.
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