The Debt Management Office (DMO) has stated that the Federal Government has made sufficient budgetary provisions to meet the country’s foreign and local debt obligations.
This was disclosed in a statement issued on Wednesday in Abuja. According to the DMO, Nigeria’s debt management is in line with relevant laws and international standards.
The office emphasised that the country has consistently met its external and domestic debt obligations, making federal government securities appealing to both local and foreign investors.
The DMO pointed to the successful pricing of 2.2 billion dollars in Eurobonds in the international capital markets, which garnered over nine billion dollars in subscriptions. “Nigeria attracted a wide range of investors from multiple jurisdictions including the UK, North America, Europe, Asia, Middle East and participation from Nigerian investors,” the statement said.
“It is an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management,” the DMO added.
The statement also highlighted that the transaction saw a peak order book of more than nine billion dollars, reflecting strong support from diverse investors. Demand came from a mix of fund managers, insurance and pension funds, hedge funds, banks, and other financial institutions.
“One of the landmark achievements of the Eurobond is that it opened up opportunities for banks and other corporate entities in the Eurobond market,” it noted.
The DMO further emphasised that the growing interest in FGN bonds, Sukuk bonds, and other FGN securities demonstrates the country’s adherence to best practices in debt management. The office reassured that adequate provisions have been made in the Medium- Term Expenditure Framework (MTEF) and annual budgets to meet debt service obligations as they arise.
Through borrowing, the DMO stated that Nigeria has developed a strong domestic capital market, attracting interest from both local and foreign investors.
