Last August Nigeria approved a three-year plan to borrow more from abroad so that 40 percent of its loans would come from offshore, compared with the previous 16 percent, and to extend its debt maturity profile.
It planned to borrow as much as $10 billion from debt markets, with about half of that coming from abroad to lower its funding cost, but it has struggled to tap concessionary loans from the World Bank.
The government had initially planned to borrow to 1.25 trillion naira from the local market and 1.067 trillion naira abroad this year.
Economist says increasing domestic loans was a sign that the country was struggling to attract interest offshore and could send interest rates higher at home.
The government’s local-currency debt spiked to 13.88 trillion naira last year, up from 8.83 trillion in 2015, and is set to rise further.
Last year’s budget – passed in May 2016 – was delayed for months due to disagreements between lawmakers and the presidency, cutting the supply of government money and deepening the economic crisis.
Osinbajo, a lawyer who is seen as more friendly to business than Buhari, chaired cabinet meetings during the president’s previous medical leave and played an active role in driving policy changes. ($1 = 304.60 naira)