On Wednesday, the Debt Management Office (DMO) disclosed that the Federal Government has made adequate budgetary provisions to meet Nigeria’s foreign and local debt obligations.
The DMO made this known in a press statement made available to New Telegraph in Abuja, noting that Nigeria’s debt management practices align with relevant legislation, regulations, and international standards.
It noted that the country has consistently serviced its external and domestic debts promptly, enhancing the attractiveness of Federal Government securities to both foreign and local investors.
The DMO revealed the recent successful issuance of 2.2 billion dollars in Eurobonds on the international capital markets, which received subscriptions exceeding 9 billion dollars.
“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,” it said.
The DMO explained that demand for the Eurobonds came from a mix of fund managers, insurance and pension funds, hedge funds, banks, and other financial institutions.
“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,” it said.
The DMO added that the growing interest in FGN bonds, Sukuk bonds, and other FGN securities reflects Nigeria’s adherence to best practices in debt management.
It assured stakeholders that sufficient provisions had been made in the Medium-Term Expenditure Framework (MTEF) and annual budgets to meet the country’s debt service obligations as they fall due.
It further stated that borrowing had enabled Nigeria to develop a robust domestic capital market, attracting substantial interest from both local and foreign investors.
Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said that the successful issuance of the Eurobonds signals increasing confidence in the government’s ongoing efforts to stabilise the Nigerian economy.
According to Edun, “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.”
The Governor of the Central Bank of Nigeria, Yemi Cardoso, also commented on the development, stating that the outcome reflects growing investor confidence and the resilience of Nigeria’s credit.
“It is evident of our improved liquidity position and continued access to international markets to support the financing needs of the government,” Cardoso said
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