The Debt Management Office (DMO) has assured that Nigeria has made sufficient budgetary provisions to meet its debt obligations following the issuance of $2.2 billion in Eurobonds.
In a statement released on Wednesday, as reported by the News Agency of Nigeria (NAN), the DMO highlighted that Nigeria has consistently serviced both its external and domestic debts on schedule, thereby enhancing investor confidence in federal government bonds.
The DMO stated that this commitment reflects the country’s strict adherence to best practices in debt management.
According to the office, Nigeria’s ability to meet its debt obligations is underpinned by meticulous planning and resource allocation, facilitated through the Medium-Term Expenditure Framework (MTEF) and annual budgets.
The DMO also emphasised that Nigeria’s debt management practices are in full compliance with relevant laws and regulations, aligning with international standards.
On 2nd December, the DMO announced that Nigeria had successfully raised $2.2 billion in the international capital market through its latest Eurobond issuance, marking the federal government’s return to the market after a two-year hiatus.
“Nigeria attracted a diverse range of investors from jurisdictions including the UK, North America, Europe, Asia, the Middle East, and also from Nigerian investors,” the statement read.
“This reflects sustained investor confidence in the country’s sound macroeconomic policy framework and prudent fiscal and monetary management.”
The DMO added that the transaction achieved a peak order book exceeding $9 billion, demonstrating strong support from investors across various geographies and classes.
Additionally, the DMO noted that one of the significant outcomes of the Eurobond issuance is its role in paving the way for Nigerian banks and corporate entities to access the Eurobond market.
The office further highlighted that Nigeria’s borrowing has contributed to the development of a robust domestic capital market, attracting both local and foreign investors.
