Sovereign Debt Note

The Federal Government has commenced the issuance of Sovereign Debt Notes (SDN’s) as a security against any delay in payment of subsidy for imported cargoes SDN. Introduced on the 18th of May, SDN which is another name for government borrowing, is like Treasury Bills (TB’s) (government securities) and can be discounted for cash, but the only difference between the two is that while the former is a short-term borrowing the latter is for long term.