DMO Assures Nigeria’s Debt Obligations Are Fully Covered
The Debt Management Office (DMO) has assured Nigerians that the Federal Government has made adequate budgetary provisions to meet both foreign and local debt obligations.
In a statement issued on Wednesday in Abuja, the DMO emphasized that Nigeria’s debt management practices align with relevant legislations, regulations, and international standards.
Over the years, Nigeria has consistently serviced its external and domestic debts on time, bolstering the attractiveness of federal government securities to both foreign and local investors.
Highlighting recent achievements, the DMO referenced the successful pricing of $2.2 billion in Eurobonds in the international capital markets, which garnered a peak subscription of over $9 billion.
“Nigeria attracted a wide range of investors from multiple jurisdictions including the UK, North America, Europe, Asia, Middle East and participation from Nigerian investors.
“It is an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.
“The transaction attracted a peak order book of more than nine billion dollars. This underscores the strong support for the transaction across geography and investor class,” the DMO said.
The office noted that demand for the Eurobonds spanned various investor classes, including fund managers, insurance and pension funds, hedge funds, banks, and other financial institutions.
It also highlighted how the Eurobond success has paved the way for Nigerian banks and corporate entities to access the Eurobond market.
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Additionally, the DMO pointed to the growing interest in FGN bonds, Sukuk bonds, and other government securities as evidence of adherence to best practices in debt management.
It assured Nigerians that adequate provisions have been made in the Medium-Term Expenditure Framework (MTEF) and annual budgets to meet debt service obligations.
Through strategic borrowing, the DMO said Nigeria now has a robust domestic capital market, attracting increased interest from both local and foreign investors.
