ABUJA: The Debt Management Office (DMO) announced that the Federal Government of Nigeria has secured sufficient budgetary provisions to meet its foreign and local debt obligations, reflecting robust fiscal management and investor confidence.
According to News Agency of Nigeria, the DMO emphasized that Nigeria’s debt management aligns with both national and international standards, ensuring timely servicing of external and domestic debts. This commitment has bolstered the appeal of Federal Government securities to investors worldwide. The recent issuance of $2.2 billion in Eurobonds, which attracted subscriptions exceeding $9 billion, underscores the country’s credibility in the international capital markets.
The DMO highlighted that the Eurobond issuance drew interest from a diverse array of investors across regions including the UK, North America, Europe, Asia, and the Middle East, as well as Nigerian investors. This broad participation signifies sustained confidence in Nigeria’s macro-economic policies and financial management. The transaction saw a peak orderbook of over $9 billion, demonstrating robust support across various geographies and investor classes.
Demand for the Eurobonds was notably strong among fund managers, insurance and pension funds, hedge funds, banks, and other financial institutions. The issuance also created new opportunities for banks and corporate entities in the Eurobond market. The DMO noted an increasing interest in Federal Government of Nigeria (FGN) bonds, sukuk bonds, and other securities, attributing this to Nigeria’s adherence to best practices in debt management.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, remarked on the success of the Eurobond issuance as a sign of growing investor confidence in the government’s economic stabilization efforts. He noted the diverse investor appetite for Nigeria’s Eurobonds as encouraging, signaling the government’s progress in diversifying funding sources and engaging with international capital markets.
Yemi Cardoso, the Governor of the Central Bank of Nigeria, also commented on the development, highlighting the outcome as indicative of Nigeria’s improved liquidity position and ongoing access to international markets to support government financing needs.