Minister of Finance, Mrs. Kemi Adeosun, yesterday, said that the federal government’s debt service obligation would be reduced by N90 billion in 2018 through the Eurobond issuance programme. In a statement titled, ‘Response to Frequently Asked Questions on Nigeria’s Eurobond’, Adeosun explained that the federal government decided to restructure the nation’s debt profile away from local to foreign component through cheaper cost Eurobond in order to reduce the debt service payments which accounted for 45 percent of the total revenue as at third quarter of this year.

According to her the plan is to increase the percentage of foreign borrowing to 40 percent of total debt from 18 percent. She stated: “Over the last 5 years, Nigeria has been overly focused on domestic debt, which is short term and high cost.