The Debt Management Office has reassured Nigerians that the Federal Government has made sufficient budgetary provisions to meet both foreign and local debt servicing obligations as they fall due in 2025.
This assurance comes as the Federal Government plans to allocate N16.327 trillion for debt servicing out of the N49.7 trillion proposed expenditure in the 2025 budget currently before the National Assembly.
In a statement issued in Abuja, the DMO affirmed that Nigeria’s debt management strategy adheres to relevant legislation, regulations, and international best practices. The agency highlighted that the country has consistently met its external and domestic debt obligations, enhancing investor confidence in Nigeria’s financial instruments.
The DMO emphasised, “Nigeria’s consistent debt servicing has made its securities a delight to investors both locally and internationally.”
The DMO celebrated the Federal Government’s recent issuance of $2.2 billion Eurobonds on the international capital markets, which attracted subscriptions exceeding $9 billion. This remarkable performance reflects investor confidence in Nigeria’s macroeconomic framework and fiscal management.
The agency stated, “Nigeria attracted a wide range of investors from multiple jurisdictions, including the UK, North America, Europe, Asia, and the Middle East, alongside participation from Nigerian investors.
“The transaction’s peak order book of over $9 billion underscores strong support across geography and investor classes.”
The DMO further noted that the Eurobond issuance opened doors for banks and corporate entities in the Eurobond market, marking a significant achievement for the Nigerian financial sector.
The agency also highlighted the increasing interest in Federal Government bonds, Sukuk bonds, and other securities, attributing this to Nigeria’s adherence to best practices in debt management.
It assured stakeholders that provisions for debt servicing have been incorporated into the Medium-Term Expenditure Framework for 2025-2027 and annual budgets, ensuring that obligations are met without disruption.
The DMO added, “The Federal Government’s borrowing has significantly deepened the domestic capital market, making it highly attractive to both local and foreign investors.”
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the successful Eurobond issuance as a testament to the growing confidence in the government’s efforts to stabilise the economy.
Edun stated, “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 international capital markets.”
Central Bank of Nigeria Governor, Mr Yemi Cardoso, also lauded the outcome of the Eurobond issuance, noting its significance in bolstering investor confidence and Nigeria’s credit resilience.
Cardoso remarked, “It is evident of our improved liquidity position and continued access to international markets to support the financing needs of the government.”
The DMO reaffirmed its commitment to prudent debt management, ensuring that Nigeria remains on a sustainable path while leveraging domestic and international markets to finance its development objectives. This, it said, aligns with the Federal Government’s broader goal of stabilising the economy and promoting inclusive growth.
