The Debt Management Office (DMO) has raised N4.9 trillion out of the N7.3 trillion approved for Ways and Means securitization, according to its Director General (D-G) Patience Oniha. She disclosed this on Monday during an interactive session with primary dealers in the federal government securities market in Lagos.
TheCable newspaper quoted her to have said: “For the Ways and Means, out of the N7 trillion approved for securitisation, we have raised N4.905 trillion.” She said the domestic financial market remains a major source of funding for the federal government.
The DMO D-G also said that N4.5 trillion has been raised to partly finance the N6 trillion budget deficit, adding that the deficit will be covered by new domestic borrowing. “Out of the new domestic borrowing of N6 trillion, we have raised N4.5 trillion,” she stated.
She recalled that when the international markets were closed during the COVID-19 period, the government was able to raise the full amount needed to fund the budget. “Last year, we raised N7 trillion as new domestic borrowing. It speaks to the size of the domestic market, its resilience, and its sophistication, unlike we have in many African markets,’’ she noted.
Oniha said the financial sector had come a long way, and the interactive session is another strategic meeting to chart a way forward. Also speaking during the session, President of the Financial Market Dealers Association (FMDA), Nadia Zakari, said that the Nigerian business environment was evolving and unique, which makes interactive sessions necessary. Zakari said these sessions were crucial for both market operators and the government to make informed decisions as they plan for the rest of the year.