Nigeria has sold a five and 10-year debt at a flat rate of 15 percent at an auction on Wednesday to curtail borrowing costs as inflation declines, traders said on Thursday.
The Debt Management Office (DMO) raised a total of 121.13 billion naira, more than the 100 billion naira it wanted to raise.
The DMO sold three billion naira of the 2021 paper and 97 billion naira of the 2027 paper at 15 percent. It allotted 21.13 billion naira of the 10-year debt on a non-competitive basis.
Borrowing costs for the government have fallen from as high as 18 percent a few months ago as inflation has slowed, helping the state raise money to cover a gap in its budget.
It expects a budget deficit of about 2.36 trillion naira this year, with more than half the deficit to be funded through local borrowing, as it tries to stimulate an economy battered by lower oil prices.
Annual inflation eased for the eighth straight month in September, falling to 15.98 percent, with analysts expecting further declines in the consumer price index this year.
On Thursday, traders told Reuters that the central bank planned to offer open market bills for 91- and 203-days to raise a total of 80 billion naira.