The Debt Management Office (DMO) has affirmed that the Federal Government (FG) has made sufficient budgetary provisions for Nigeria’s debt obligations. This assurance covers both foreign and local debts, reflecting a commitment to financial stability and fiscal responsibility.
DMO Highlights Debt Servicing Consistency
The debt management office emphasized that Nigeria’s debt management aligns with relevant laws, regulations, and global best practices. According to the DMO, the FG has consistently serviced external and domestic debts on time. This consistency has increased the appeal of Federal Government securities to both foreign and local investors.
Reports Successful Eurobond Issuance
The debt management office announced the successful issuance of $2.2 billion in Eurobonds on the international capital markets. The issuance attracted subscriptions exceeding $9 billion, demonstrating strong investor confidence. The DMO noted that investors from the UK, North America, Europe, Asia, the Middle East, and Nigeria participated in the transaction.
This remarkable achievement reflects Nigeria’s sound macroeconomic policies and prudent fiscal management. The DMO stated, “The transaction attracted a peak orderbook of more than $9 billion, showing broad support across geographies and investor classes.”
DMO Notes Investor Confidence in Nigerian Markets
The office highlighted that demand for the Eurobonds came from diverse financial entities, including fund managers, pension funds, banks, and hedge funds. The debt management office also explained that the Eurobond issuance opened opportunities for Nigerian banks and corporate entities to explore the international capital markets.
Additionally, the DMO pointed to the growing interest in FGN bonds, sukuk bonds, and other securities. This interest underscores the government’s adherence to international debt management standards.
Assures Debt Service Provisions in Budgets
The debt management office reassured stakeholders that sufficient provisions are in place within the Medium-Term Expenditure Framework (MTEF) and annual budgets. These provisions ensure Nigeria can meet its debt obligations promptly as they fall due.
Ministers and DMO Praise Economic Confidence
Finance Minister Wale Edun lauded the Eurobond issuance, describing it as evidence of growing investor confidence. He noted, “This success reflects our commitment to diversifying funding sources and stabilizing the economy.”
Similarly, Central Bank Governor Yemi Cardoso remarked that the outcome signifies Nigeria’s improved liquidity and ongoing access to international markets. The DMO’s efforts further reinforce this positive trajectory, ensuring sustained confidence in the Nigerian economy.
