#Debt Management Office (DMO)

[ejesgistnews]

Nigeria's public debt stock has escalated to N134.3 trillion ($91.3 billion) as of the end of the second quarter of 2024. This marks a significant increase of 10.35% from N121.7 trillion ($91.5 billion) recorded in the first quarter, as reported by the Debt Management Office (DMO). An exclusive document from the Ministry of Finance obtained by Nairametrics reveals that this rise is primarily attributed to the devaluation of the naira, underscoring persistent challenges related to exchange rate fluctuations. Read Also: BRICS Expands to 13 New Countries as Nigeria’s Inclusion Sparks Controversy The document states, “In Q2 2024, the debt stock grew in naira terms to N134.3 trillion from N121.7 trillion in Q1 2024, driven mainly by exchange rate devaluation. The dollar amount of debt was roughly the same.” This indicates that while the total debt has increased in naira, its dollar value has remained stable, reflecting the effects of currency dynamics on debt valuation. Domestic and External Debt Analysis Within the debt structure, domestic debt constitutes 53% of the total, amounting to N71.2 trillion ($48.4 billion), while external debt represents 47%, or N63.1 trillion ($42.9 billion). Notably, Nigeria's debt-to-GDP ratio continues to rise, now exceeding 50%, raising concerns regarding fiscal sustainability. Pay Attention To: Tinubu Appoints Former NFF Official Shehu Dikko, Dismissed Over Corruption Allegations, as Sports Commission DG FGN Bonds, which comprise 78% of domestic debt, highlight the government’s reliance on local bond markets for funding. Other instruments in the domestic portfolio include Nigerian Treasury Bills, Savings Bonds, Sukuk, Promissory Notes, and Green Bonds, illustrating a diverse borrowing strategy. On the external front, multilateral loans account for the largest segment of external debt at 50.4%, with bilateral loans and commercial loans contributing 13.7% and 35.9%, respectively. This balance between concessional and market-based borrowing allows Nigeria to effectively manage its debt obligations while navigating the complexities of global financial markets. Continued Activity in the Debt Market During a recent press conference at the IMF/World Bank annual meetings in Washington D.C., Tobias Adrian, the IMF’s financial counsellor, noted that Nigeria and other frontier markets have remained active in the debt market throughout 2024, despite increased financing costs compared to pre-2021 levels. He stated, “Frontier markets, including Nigeria, have been active in the debt market this year, and though access to financing is still more expensive than before, the overall issuance levels have been encouraging.” Additionally, the Ministry of Finance announced that Mr Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, will advocate for adequate and affordable financing to support Nigeria’s ongoing reforms. The statement highlighted that Edun would lead discussions aimed at bolstering Nigeria’s economic resilience, particularly in light of the nation’s structural adjustments. Recent reports indicate that Nigeria’s debt servicing payments surged by 69% in the first half of 2024, reaching N6.04 trillion, a significant increase from N3.58 trillion in the same period of 2023. This sharp rise in debt service obligations, driven largely by naira devaluation affecting foreign debt repayments, reflects a mounting burden on the Federal Government, with debt repayment consuming a considerable portion of its financial resources. Data from the Central Bank of Nigeria (CBN) reveals that debt service in H1 2024 constituted 50% of the total expenditure of N12.17 trillion and an astonishing 162% of the N3.73 trillion total revenue generated during this timeframe. Stay informed with Ejes Gist News – Your Source for Credible News in Nigeria.

[godwin247]

Payment of FGN coupon delayed due to technical glitches: DMO

The Federal Government via the Debt Management Office has attributed the recent delay in coupon payments to savings bond subscribers to system & processing challenges. Bloomberg reports that the first coupon payment on the 2 year & 3 year debt instruments, through which the government raised N4.2 billion in June, was due on Sept. 12 but has remained unpaid. Reports showed that this marks the…

[lawblogng]

Porn video interrupts Nigeria’s investors call on dollar funding

A pornography video clip, on Thursday, interrupted an investors’ call organised by Nigeria’s Debt Management Office (DMO) to secure dollar investments. The incident occurred during a hybrid roadshow for the federal government’s dollar-denominated domestic bond. The incident, which came across as bizarre and embarrassing, has been linked to “hackers”. “They hacked and showed porn on the Zoom call…

[mouthpiecengr]

Nigeria’s Public Debt Rises By ₦‎24.33 Trillion In Three Months 

The Debt Management Office (DMO) of Nigeria has announced that the nation’s total public debt has increased significantly to N121.67 trillion (approximately $91.46 billion) as of March 31, 2024.  According to a statement from the DMO, this figure encompasses the combined domestic and external debts of the Federal Government of Nigeria (FGN), the thirty-six state governments, and the Federal…

[goldmynetv]

FG to borrow N2.5tn via bonds – DMO

The Federal Government is seeking to raise N2.5tn in its second FGN bonds auction of the year. Debt Management Office in a circular issued on Wednesday, stated that the offerings consisted of N1.25tn with a maturity date of February 2031 and N1.25tn with a 10-year tenor. FGN savings bonds are part of the domestic borrowing plan of the Federal Government. Last year, the Federal Government…

[touchaheartnews]

Nigeria's Debt Increase Challenges: Naira Devaluation Impact

Nigeria’s public debt has witnessed a significant surge in the second quarter of 2023, raising concerns about its sustainability and impact on the country’s economy. According to the Debt Management Office (DMO), the total public debt has reached a staggering N87.38tn, marking a 75.29% increase compared to N49.85tn recorded just three months earlier in March 2023. Touchaheart Nigeria reports that…

[hardynwa]

IMF proffers solution to Nigerian govt’s borrowing spree

The International Monetary Fund (IMF) has asked Nigeria to be intentional in making changes to cut borrowing. The global institution specifically called on the Nigerian government to raise its incomes from taxes, particularly through ensuring compliance and expanding the tax net in order to generate more revenues and cut burgeoning debt. IMF made this call in its latest Fiscal Monitor titled ‘On the path to Policy Normalisation’ released Wednesday. Ripples Nigeria had earlier reported that the Debt Management Office (DMO) reported in March that the country’s debt stock as of December 2022, had reached N46.25 trillion. Experts have also projected that by May 2023, the next administration will meet N77 trillion borrowing. IMF noted that Nigeria’s debt was projected to keep rising and that necessary steps must be taken to generate needed revenues. “In general, what we are saying about Nigeria is the need for a medium-term plan to reduce debt vulnerabilities over time and is because Nigeria has very low tax revenues. So, that makes it more vulnerable to these types of shocks and tightening global conditions,”Division Chief, Fiscal Affairs Department, IMF, Paulo Medas said. “What we advocate is raising taxes which is going to create space not only to manage debt but also to spend on other priorities. And the other part of what we say is that Nigeria has not benefited as much from the windfall of the oil prices in the past because a lot of it has been spent on these untargeted energy subsidies. “By shifting to more targeted subsidies, you can reduce the fiscal deficit, and you can use that resources on other priorities that actually can promote higher growth in the future such as education, and health, and reduce the deficit. So having more targeted energy subsidies actually can be very beneficial both for fiscal, debt dynamics, and growth. “Nigeria should broaden the tax space, improving tax compliance so Nigeria has one of the lowest tax revenues in the world as a share of GDP. So, there’s a lot of room for increasing the tax base and improving tax compliance.” Read the full article

[musicafricawake]

MUAFA NEWS!!!

NACCIMA, OTHERS LIST RISKS TO ECONOMY AS DEBT HITS N46.3trn.. The Debt Management Office, DMO, yesterday said the nation’s public debt rose by N6.69 trillion or 22.47 per cent to N46. 25 trillion ($103.11 billion) at the end of  2022 from N39. 56 trillion ($95.77 billion) at the end of December 2021, with the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture,…

[latestnews2024]

Nigeria Debt Management Office's $48.8 Billion Debt Contravenes the Law Says Expert – Economics Bitcoin News

Nigeria Debt Management Office’s $48.8 Billion Debt Contravenes the Law Says Expert – Economics Bitcoin News

The Nigerian Debt Management Office (DMO) contravened the law when its borrowings exceeded the set limit which is equivalent to $2.2 billion, Adetilewa Adebajo, an international financial markets expert has reportedly said. Adebajo also suggested that the Central Bank of Nigeria governor Godwin Emefiele should be probed for his role in allowing the DMO’s borrowings to balloon to more than $48.8…

[latestnews23]

Nigeria Debt Management Office's $48.8 Billion Debt Contravenes the Law Says Expert – Economics Bitcoin News

Nigeria Debt Management Office’s $48.8 Billion Debt Contravenes the Law Says Expert – Economics Bitcoin News

The Nigerian Debt Management Office (DMO) contravened the law when its borrowings exceeded the set limit which is equivalent to $2.2 billion, Adetilewa Adebajo, an international financial markets expert has reportedly said. Adebajo also suggested that the Central Bank of Nigeria governor Godwin Emefiele should be probed for his role in allowing the DMO’s borrowings to balloon to more than $48.8…

[sageglobalresponse]

$10bn Nigeria, US renewable energy investment programme begins Q1 2023

Nigeria and Sun Africa LLC, the largest U.S. renewable energy company operating in Africa, have entered into a development and Engineering, Procurement and Construction (EPC) phase one implementation framework agreement begins quarter one 2023.

The deal will culminate into the construction of 5,000 MW of solar generation and 2,500 MWh of battery energy storage power plants for up to $10 billion investment from the U.S. government.

The Senior Special Assistant on Media and Publicity, to President Muhammadu Buhari, Mallam Garba Shehu, said the agreement was signed at the US-Africa Business Forum (USABF) in Washington D.C last week.

Shehu, said that the agreement was signed by the Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, on behalf of the Federal Government, and the CEO of Sun Africa, Adam Cortese, in the presence of Amos Hochstein, President Joe Biden’s Special Presidential Coordinator for the Partnership for Global Infrastructure and Investment.

In his address, President Muhammadu Buhari had said: “As part of the National Renewable Energy and Energy Efficiency Policy, we set the vision 30:30:30 which aims at achieving 30GW of electricity by 2030 with renewable energy contributing 30 per cent of the energy mix” in the presence of President Biden and other world leaders, and sought the United States’ support to achieve it.

Sun Africa, Sterling and Wilson Renewable Energy Limited, S&W, a leading U.S. and international solar EPC company, and the Nigerian government, have been working on the development of transformation grid-connected and mini-grids solar projects in multiple locations, including interconnection, electrification and smart meters infrastructure.

To ensure the broadest and most comprehensive approach to access electricity, Sun Africa is also implementing solar cabins and solar home systems where the mini-grids are not economically viable.

The project will be constructed in different phases across the six geopolitical zones and will provide clean, reliable and affordable electricity to more than 30 million people.

All the technical and financial due diligence activities for the Phase 1 of the project have been completed for the first five selected locations for the grid-connected solar projects of up to 961 MWp of solar and 455 MWh of battery energy storage.

Subsequently, ING Bank, US EXIM Bank, the Federal Ministry of Finance and the Debt Management Office (DMO) have concluded all the financial negotiations and are closing the financing terms for up to $2 billion.

This transformative solar project is on top of the U.S. climate and sustainable energy agenda and has been prioritised as a strategic lead for the U.S., which is entirely in line with the Federal Government’s Energy Transition Plan, addressing clean and reliable energy supply, creating jobs and ensuring transfer of knowledge and technology.

[wakadaily]

Nigeria's public debt stock hits N44.6 trillion

Nigeria’s public debt stock hits N44.6 trillion

The Debt Management Office (DMO) said Nigeria’s total public debt reached N44.6 trillion in the third quarter of this year (Q3 in 2022). This represents a 2.9 per cent quarter-on-quarter decline when compared to N42.84 trillion recorded in Q2 in 2022. According to the statement obtained from DMO’s website on Friday, noted that the increase in public debt was due to new borrowings by the Federal…

[marketforcesafrica-blog]

Nigeria's Debt Office Opens FGN Savings Bonds for Sale

Nigeria’s Debt Office Opens FGN Savings Bonds for Sale

Nigeria’s Debt Office Opens FGN Savings Bonds for Sale Nigeria’s debt management office (DMO) has announced its Dec. issuance of two Federal Government of Nigeria (FGN) Savings Bonds at N1,000 per unit. According to a statement by the DMO, the first offer is a two-year FGN Savings Bond due on Dec. 14, 2022, at an interest rate of 12.255 per cent per annum. The second one is a three-year FGN…

[apwmagazine]

DMO Raises N130bn From Sukuk For Roads

DMO Raises N130bn From Sukuk For Roads

The Debt Management Office has said it raised N130bn from its N100bn Ijarah Sukuk bonds, which were issued on November 21, 2022. In a statement on its website on Monday, the DMO said that it recorded 165 per cent oversubscription on the bonds. Since it was introduced in 2017, Sukuk bonds have provided N612.56bn for the Federal Government and have helped in funding 71 roads and six bridges,…

[truetellsnigeria1]

FiBOP Workshop: Regulators, Operators Set To X-ray Fintech Service Delivery in Capital Market

FiBOP Workshop: Regulators, Operators Set To X-ray Fintech Service Delivery in Capital Market

  The Apex regulatory institution in the Nigerian Capital market, the Securities and Exchange Commission, SEC; the Nigeriian Exchange Ltd, NGX, the Debt Management Office, DMO, as well as Market Operators such as Cowry Assets Ltd. are set fot the Finance and Business Online Publishers, FiBOP, workshop slated for Thursday, November 17, 2022.by 10.00am at the Airport Hotels, Ikeja, Lagos According…