The Federal and state governments borrowed N3.24 trillion in local and international bond issuances last year, it was learnt yesterday.
According to Nigerian Stock Exchange (NSE) Chief Executive Officer (CEO) Oscar Onyema, the governments sourced N1.286 trillion in new debts through the local capital market last year.
The Federal Government also raised $5.36 billion (about N1.95 trillion) in Eurobonds.
Addressing stakeholders on the activities at the capital market yesterday at the Exchange in Lagos, Onyema said the Federal Government dominated the debt capital market in 2018, raising N1.16 trillion to finance fiscal and infrastructural deficits. State Governments also raised N125.59 billion in new debts during the year.
According to him, the new debt issues buoyed the fixed-income market capitalisation by 11.75 per cent to N10.17 trillion in 2018 as against N9.10 trillion in 2017.
The governments crowded the private sector during the period as companies only raised a total of N31.47 billion.
“The market also witnessed the listing of a N100 billion Sukuk designed to finance critical road infrastructure across the country,” Onyema said.
The total number of listed bonds on the NSE rose from 85 bonds in 2017 to 108 bonds in 2018. The increase helped to moderate the decline in number of quoted equities from 172 in 2017 to 169 in 2018. With Exchange Traded Products unchanged at nine, the number of listed securities at the NSE increased from 266 in 2017 to 286 in 2018.
The total market capitalisation of the Exchange however declined from N22.72 trillion in 2017 to N21.90 trillion in 2018.
The decline was attributed to a drop in total market value of quoted equities from N13.62 trillion in 2017 to N11.73 trillion in 2018.
