The Federal Executive Council (FEC) has approved the refinancing of the country’s domestic debts into treasury bills worth three billion dollars as part of the overall strategy of government to reduce the cost of borrowing.
The Minister of Finance, Kemi Adeosun, gave the indication while addressing State House Correspondents on the FEC meeting presided over by Acting President Yemi Osinbajo.
According to her, the approval was derived from a memo her ministry presented to FEC to enable the Federal Government to restructure its debt portfolio.
The Minister noted that the measure had the advantage of reducing cost of borrowing. She noted that the average right that the nation borrowed internationally did not exceed seven per cent, whereas in the treasury bills, it was between 13.6 per cent and 18.5 per cent.
Adeosun said the country was almost reducing by half the cost of borrowing which was trying to relieve the pressure on debt service.