DEBT MANAGEMENT OFFICE NIGERIA UPDATE ON THE DEBT

DEBT MANAGEMENT OFFICE NIGERIA UPDATE ON THE DEBT MANAGEMENT OFFICE ACTIVITIES FOR SECOND QUARTER, 2018 BY THE DEBT MANAGEMENT OFFICE AT THE SECOND MEETING OF THE CAPITAL MARKET COMMITTEE, LAGOS THURSDAY AUGUST 9, 2018

DEBT MANAGEMENT OFFICE NIGERIA TABLE OF CONTENTS RECENT DEVELOPMENTS i. FGN Securities Issuances, Auction Results and Redemptions ii. Other Activities in the Domestic Market

DEBT MANAGEMENT OFFICE NIGERIA RECENT DEVELOPMENTS i) FGN Securities Issuances, Auction Results and Redemption Table 1: Issuances and Redemption (N’ Billion) Quarter 1 2 Types of Bond Total Issuance Redemption FGN Bonds 280. 00 - FGN Savings Bond 0. 583 - FGN Bonds 220. 00 300. 00 FGN Savings Bond 0. 953 - 501. 536 300. 00 Total Source: DMO Quarter 1 2 Description 12. 75% FGN APR 2023 (New Issues/Reopenings) Table 2: Auction Results (N’ Billion) 13. 53% FGN MAR 2025 (Re-openings) 13. 98% FGN FEB 2028 (Re-openings) 14. 50% FGN 16. 2884% FGN JUL 2021 MAR 2027 (Re-openings) Total Amount Offered Subscriptions - 30. 00 80. 00 110. 00 60. 00 280. 00 - 25. 21 177. 44 113. 49 94. 26 410. 40 Allotments - 8. 91 97. 54 82. 35 64. 88 253. 68 Average Marginal Rates - 13. 5300 13. 79 13. 4933 13. 4910 - Amount Offered Subscriptions 70. 00 80. 00 - - 220. 00 69. 90 74. 75 274. 37 - - 419. 02 Allotments 45. 28 27. 90 98. 49 - - 171. 67 Average Marginal Rates 13. 25 13. 38 13. 42 - - - Source: DMO. Subscription Rate (%) 146. 57 190. 46

DEBT MANAGEMENT OFFICE NIGERIA ii) Other Activities in the Domestic Market Listing of N 100 billion Debut Sovereign Sukuk The N 100 billion 7 -year 16. 47% Ijarah Sovereign Sukuk was listed on The Nigerian Stock Exchange and the FMDQ OTC Securities Exchange on April 10, 2018. With the Listing, the Sukuk is now being traded, thereby providing liquidity and price discovery for investors and benchmark for potential issuers of Sukuk. Redemption of Short Term Domestic Debt The Debt Management Office (DMO) continued with the implementation of its Debt Management Strategy, which seeks to reduce the relative share of domestic debt in the Debt Stock in order to reduce Debt Service Costs. Consequently, using the proceeds of Eurobonds issued for refinancing purpose, N 279. 665 billion and N 359. 232 billion of NTBs, were redeemed in Q 1 and Q 2 of 2018, respectively. q The redemption of the NTBs, which resulted in an injection of liquidity into the market has lead to a reduction in the yields on FGN Securities. The yields on the FGN Securities came down from about 18. 6% in December 2017 to 13 -14% in June 2018. q Government expects that the liquidity released into the system will be accessed by other borrowers, particularly the private sector. 4

DEBT MANAGEMENT OFFICE NIGERIA Thank you 5