The Debt Management Office (DMO) has assured Nigerians that the federal government will fulfil its domestic and foreign debt obligations in 2025....CLICK HERE TO READ THE FULL ARTICLE➤
The debt office said sufficient budgetary provisions in the N47.9 trillion 2025 Appropriation Bill cover local and foreign debt.
The reassurance follows concerns over Nigeria’s rising debt servicing commitments, with N15.81 trillion earmarked for this purpose in the proposed budget, Punch reports.
President Bola Tinubu presented the budget to the National Assembly last month, projecting revenue of N34.82 trillion and a deficit of N13.0 trillion, financed through fresh borrowing.
The budget is under scrutiny by appropriation committees in both chambers of the legislature, with their reports expected later this month(January 2025).
Once finalised, the bill will be passed and signed into law by Tinubu.
In a statement issued on Wednesday, January 1, the DMO dismissed fears of a potential default, stressing that Nigeria’s debt management aligns with legal provisions and international standards.
The agency pointed out that Nigeria successfully issued a $2.2 billion Eurobond in November, attracting over $9 billion in subscriptions from a diverse pool of investors across the UK, North America, Europe, Asia, the Middle East, and Nigeria.
DMO said:
“This overwhelming response reflects continued investor confidence in Nigeria’s macroeconomic policies and prudent fiscal and monetary management.”
The agency also noted that the Eurobond issuance opened opportunities for Nigerian banks and corporate entities in the international capital markets.
Additionally, it pointed to the growing interest in FGN bonds, Sukuk bonds, and other securities as evidence of Nigeria’s commitment to best practices in debt management.
Data from DMO
shows that in the first quarter (January to March), the Nigerian government spent $1.12 billion to service debts owed to various foreign entities.
From April to June, another $1.12 billion of revenue was used to repay debts owed to countries and institutions such as the World Bank and the International Monetary Fund (IMF).
For example, in the first quarter, the total interest payment and service fee costs were $228.67 million and $53.87 million, respectively, while the second quarter’s interest payment increased to $403.68 million and the service fee stood at $25.968 million.
Other countries on the list are Equatorial Guinea, Namibia, the Democratic Republic of Congo and Zimbabwe.
African countries with low debt burden are better positioned to attract investment and more facilities from foreign and domestic debtors. ...CLICK HERE TO READ THE FULL ARTICLE➤
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