The Debt Management Office (DMO), said, yesterday, that the Federal Government has made adequate budgetary provisions to meet Nigeria’s foreign and local debt servicing as they fall due.
In the Federal Government’s 2025 budget currently before the National Assembly, President Bola Tinubu’s administration plans to spend N16. 327 trillion on its debt obligations, out of the proposed expenditure of N49.7 trillion.
According to the agency in a statement in Abuja, Nigeria’s debt management strategy conforms with relevant legislation, regulations, and international standards.
It added that the country had always consistently serviced its external and domestic debts, making Nigeria’s security a delight to investors at home and abroad.
The DMO said that the recent successful issuance of $2.2 billion Eurobonds on the international capital markets, which received subscriptions exceeding $9 billion, was a demonstration of investor confidence in the nation’s instruments.
It stated: “Nigeria attracted a wide range of investors from multiple jurisdictions, including the UK, North America, Europe, Asia, the 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 orderbook of more than nine billion dollars. This underscores the strong support for the transaction across geography and investor class.
“In addition, one of the landmark achievements of the Eurobond is that it opened up opportunities for banks and other corporate entities in the Eurobond market”.
The DMO added that the growing interest in FGN bonds, Sukuk bonds, and other FGN securities reflected Nigeria’s adherence to best practices in debt management.
The agency assured stakeholders that sufficient provisions had been made in the current Medium-Term Expenditure Framework (MTEF), running between 2025-2027 and annual budgets to meet the country’s debt service obligations.
The Federal Government’s borrowing, the DMO emphasized, has helped deepen the domestic capital market, which has become very attractive to both local and foreign investors of various status.
Earlier, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the successful issuance of the Eurobonds as demonstration of increasing confidence in the government’s ongoing efforts to stabilise the economy, to be able to take its place in global socio-economic development.
“The broad range of investor appetite to invest in our Eurobonds is encouraging as we continue to diversify our funding sources and deepen our engagement with the international capital markets, Edun had said.
In his comment following the last successful $2.2 billion Eurobond outing, the governor of the Central Bank of Nigeria (CBN), Mr. Yemi Cardoso, said the outcome reflected growing investor confidence and the resilience of Nigeria’s credit.
His words: “It is evident of our improved liquidity position and continued access to international markets to support the financing needs of the government”.
