Hitherto, a huge percentage of the Nigeria's domestic debt instruments were structured into Treasury Bills with maturities of 91days and below; creating inconsistencies and irregularities in the federal government's borrowing costs. The DMO, in a bid to restructure the Federal Government of Nigeria’s deficit funding from shorter to longer tenored borrowing instruments, improve and lengthen the yield curve in the domestic money markets, and to encourage long-term savings, introduced the sale of Federal Government of Nigeria ("FGN Bonds") Bonds in October 2003.
Up until now, a significant portion of Nigeria's domestic debt instruments were structured into Treasury Bills with maturities of 91 days or less; resulting in inconsistencies and irregularities in the federal government's borrowing costs. The DMO attempted to restructure the Federal Government of Nigeria’s deficit funding from shorter-term to longer-term borrowing instruments, improve and lengthen the yield curve in the domestic money markets, and encourage long-term savings by introducing the sale of Federal Government of Nigeria ("FGN Bonds") in October 2003.