Emmanuel OchayiPatience Oniha, Director-General of the Debt Management Office (DMO), revealed Nigeria’s accomplishment in securing N7.043 trillion for domestic borrowing in 2023.
Speaking on the sidelines of discussions for the African Debt Managers Initiative Network in Abuja during an interview with CNBC Africa, Oniha highlighted the robust demand for federal government securities, underlining the market’s depth and the increasing influx of funds into systems engaging with these securities.
Join our WhatsApp Channel“I’m happy to say that in 2023, the new domestic borrowing was N7.043 trillion, and as we speak that has been raised in full,” Oniha expressed during the interview.
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“When you compare that to the N3.5 trillion of last year, it tells you that the market has depth for you to raise money.”
Oniha emphasized the participation of institutions like banks, asset managers, pension funds, and insurance companies in these securities, indicating the growth in their balance sheets.
She noted the high subscription rates of FGN securities, signaling liquidity, and anticipated this trend to continue into the coming year.
This achievement follows Nigeria’s public debt surge to N87.38 trillion by the end of the second quarter, with domestic loans accounting for N54.13 trillion, comprising 61.9% of the entire debt.
Despite this, the DMO’s offerings, particularly FGN bonds, have seen substantial investor interest, evident in the oversubscription of products like the FGN Sukuk bond by 435% and the notable success of the 30-year bonds, oversubscribed by over 300%.
Nigeria’s ability to successfully raise domestic borrowing reflects investor confidence in federal government securities and highlights the country’s financial market’s resilience amid increasing demand.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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