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Tag: Debt Management Office (DMO)

  • DMO faults wrong insinuation on Nigeria’s debt service

    DMO faults wrong insinuation on Nigeria’s debt service

    • No N611.71b spent on dollar bond

    The Debt Management Office (DMO) has dismissed reports claiming that the federal government of Nigeria spent N611.71 billion in March 2025 servicing its first-ever U.S. dollar-denominated bond issued in the domestic capital market.

    In a statement issued yesterday, the DMO explained that the figure had been wrongly attributed, stressing that N611.71 billion represented the debt service for all outstanding federal government of Nigeria (FGN) bonds, excluding the U.S. dollar bond.

     “The statement is wrong in its entirety. The figure published by the DMO on its website for Q1 2025 as debt service on the U.S. dollar-denominated bond was N67.988 billion and not N611.71 billion,” the DMO said.

    The agency clarified further that its publications show the distinction between the two figures. “For the avoidance of doubt, the Q1 2025 Domestic Debt Service figure published on the DMO’s website for Federal Government of Nigeria Bonds in the month of March 2025 was N611.71 billion. In the same report and on a separate line, the debt service for Domestic FGN U.S. Dollar Bond for March 2025 was N67.988 billion,” it stated.

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    The DMO also addressed claims of principal repayment on the bond, noting that no such payment has been made. “Contrary to some claims, no amount was repaid as principal repayment on the U.S. dollar bond. The bond is to be repaid in full at maturity in 2029,” it said.

    Nigeria’s inaugural domestic U.S. dollar bond, issued in September 2024, marked a milestone in the country’s financing strategy. The bond raised over $900 million, with an oversubscription rate of more than 180 percent. It carries a 9.75 per cent yield and a five-year tenor, with proceeds earmarked for critical infrastructure projects.

    The bond, authorized under a Presidential Executive Order on the Foreign Currency Denominated Financial Instrument Local Issuance Programme, allows the Federal Government to raise capital in U.S. dollars from local sources, including Nigerian residents, institutional investors, and the diaspora community.

    Although denominated in dollars, the instrument is issued and traded within Nigeria. It is listed on both the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange, providing investors a platform for trading.

    The DMO stressed that the bonds are fully backed by the Federal Government of Nigeria. By targeting local investors with foreign currency-denominated instruments, the programme is intended to strengthen domestic market participation while addressing the country’s infrastructure financing needs.

  • Nigeria’s debt hits N24.9tr

    NIGERIA’s debt portfolio rose by 2.3 per cent to N24.947 trillion (about $81.274 billion) in the first quarter of the year, the Debt Management Office (DMO) said in a report released on Wednesday.

    “The Total Public Debt (TPD) grew marginally by 2.30 per cent when compared to the figure of N24.387 trillion (about $79.437 billion) as at December 31, 2018,” the report said.

    The increase of N560.009 billion in the TPD in the first quarter, the DMO said, was accounted for largely by domestic debt, which grew by N458.363 billion.”

    Increases, the DMO added, were recorded “in the Domestic Debt Stock (DDS) of the Federal Government, states and the FCT.”

    External debt also increased by N101.646 billion during the same period.

    The debt manager stated: “In relation to the Debt Management Strategy (DMS), the ratio of domestic to external debt stood between 68.49 per cent to 31.51 per cent at the end of March (2019).”

    The DMO assured that the TPD to GDP ratio would remain at 19.03 per cent within the 25 per cent debt limit imposed by the government.

    From the breakdown, the Federal Government of Nigeria (FGN) and states governments’ external debt portfolio account for 31 per cent of the total debt stock, amounting to N7.860 trillion or ($ 25.609 billion).

    With regards to the total domestic stock of the Federal Government and states, this now stands at N17.086 trillion (about $55.664 billion) or 68.49 per cent.

    The Federal Government accounts for N13.113 trillion (about $42.721billion) or 52 per cent. States and the FCT account for N3.972 trillion (about $12.942 billion) or 15 per cent. This brings Nigeria’s total debt to N24.947 trillion.

    Read Also: DMO: Nigeria’s debts hit N20tr

    The DMO said to arrive at these figures, the debt profiles of 30 states and the debt stocks of five states were considered.

    The states are: Abia, Adamawa, Akwa Ibom, Bauchi, Bayelsa, Benue, Cross River, Delta, Enugu, Gombe, Imo, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kogi, Kwara, Nasarawa, Niger, Ogun, Ondo, Osun, Oyo, Plateau, Sokoto, Taraba, Yobe, Zamfara and the FCT, as at March 31.

    The five where the debt stocks were used are: Anambra, Borno, Ebonyi, Ekiti and Lagos. That of Rivers was at September, 2018 in the new figures.

    The DMO said it used the Central Bank of Nigeria (CBN) official exchange rate of $1/N306.95 as at March 31, 2019, in converting the domestic debts to dollars.

    The states debt stock as March 31, are as follows: Abia N62,849,599,630.68; Adamawa (N97,153,965,072.71); Akwa Ibom (N199,768,698,811.90); Anambra (N33,490,668,536.72); Bauchi (N93,319,627,053.30); Bayelsa (N133,339,375,587.91); Benue (N96,905,502,591.02); Borno (N78,259,334,907.05); Cross-River (N167,252,341,140.66); Delta (N223,442,257,101.69); Ebonyi (N55,597,352,310.28); Edo (N86,367,405,983.76); Ekiti (N118,011,414,814.34); Enugu (N55,882,997,585.01); Gombe (N76,894,514,835.51); Imo (N97,851,149,167.90); Jigawa (N38,227,157,463.84); Kaduna (N93,203,947,964.61); Kano (N121,305,201,113.25); Katsina (N67,098,008,669.65); Kebbi (N67,037,456,840.31); Kogi (N96,677,066,212.09); Kwara (N59,576,712,572.23); Lagos (N542,231,174,761.82); Nasarawa (N89,953,619,684.92); Niger (N43,414,653,538.03); Ogun (N97,090,119,332.73); Ondo (N56,959,970,712.20); Osun (N147,702,865,382.96); Oyo (N94,140,261,739.96); Plateau (N98,585,866,556.33); Rivers (N225,592,469,150.22); Sokoto (N36,571,742,397.44); Taraba (N68,569,699,976.43); Yobe (N26,990,637,417.62); Zamfara (N61,950,819,816.58); FCT (N163,518,714,908).

  • N15b Green Bond oversubscribed by 220%

    Nigeria’s second Sovereign Green Bond offered for N15 billion has been oversubscribed by 220 per cent, the Debt Management Office (DMO) said on Thursday.

    A statement from DMO said “the proceeds of the Green Bond will be used to finance projects in the 2018 Appropriation Act, which will contribute to Nigeria’s commitments to the Paris Agreement on Climate Change.”

    The projects DMO said will “include Off-Grid Solar and Wind Farm, Irrigation, Afforestation and Reforestation, as well as, Ecological Restoration.”

    The DMO noted that “the results of the second Sovereign Green Bond issuance revealed increased knowledge and awareness of Green Bonds by subscribers, and perhaps also demonstrated a greater level of commitment from the general public towards protecting the environment.”

    Read Also: Fed Govt set to issue N15bn Green Bond

    Total value of subscriptions received was N32.93 billion, representing 220 per cent of the N15 billion offered. It was also revealed that, “the number of subscribers doubled when compared to the figure for the first Sovereign Green Bond issued in December 2017.”

    Retail investors were not left out, as the number of individuals who subscribed for the second Sovereign Green Bond more than doubled.

    The amount of subscriptions grew by almost 201 per cent with the share of total subscriptions rising to 1.43 per cent compared to 0.67 per cent for the 2017 Sovereign Green Bond.

    “The stronger participation of retail investors shows that financial inclusion and deepening of the domestic financial market, which are some of the key objectives of the DMO in its issuance activities, are being achieved” the DMO said.

    Whilst the offer was oversubscribed, the DMO allotted only the N15 billion that was offered for a tenor of seven years, at a coupon of 14.50 per cent per annum.

  • N100bn worth of bonds up for subscription on May 22 – DMO

    The Debt Management Office (DMO) says N100 billion worth of Federal Government bonds will be up for subscription on May 22.

    The DMO said in a circular on its website on Tuesday in Abuja that the five-year re-opening bonds of N35 billion to mature in April 2023, was offered at 12.75 per cent.

    It said that the 10-year re-opening bonds also of N35 billion to mature in April 2029 would be auctioned at 14.55 per cent.

    The website said the N30 billion 30-year bonds, introduced in April, which would be due in April 2049, would be auctioned at 14.80 per cent.

    Read Also: Finance, DMO approve N195bn to exporters for EEG settlement

    According to the DMO, units of sale is N1, 000 per unit, subject to a minimum subscription of N50 million and in multiples of N1, 000 thereafter.

    The DMO explained the bonds were backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while bullet repayment would be made on maturity date.

    Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

    NAN

  • PDP calls on N/Assembly to probe FG’s N24.3 trn debt profile

    The People’s Democratic Party (PDP) has raised questions over Federal Government’s “unwholesome” borrowings amounting to N24.38 trillion debts, from 2015 debt stock of N12.12 trillion.

    Revelations on the government’s current debt profile were contained in a report released by the Debt Management Office (DMO) last week, prompting the PDP to call on the National Assembly to investigate how the monies were spent.

    In a statement Monday by the spokesman for the PDP, Kola Ologbondiyan, the main opposition party blamed the Buhari administration for what it described as saddening and devastating debt overhang on the nation.

    According to the PDP, the rising debt profile was a product of the government’s manifest incompetence and lack of initiative to stimulate and run a productive economy.

    It blamed the administration for its reliance on heavy borrowings and unbearable tax regimes, which the party said have crippled productivity, caused untold hardship and mortgaged the economic future of the nation.

    The PDP said there has been a culture of unexplained borrowings leading to a steep rise in the debt stock from N17.5 trillion in 2016 to N21.72 trillion 2017, rising to N24.387 trillion in 2018.

    The PDP said, “It is shocking and completely insupportable that our nation’s debt had risen from N21.72 trillion in December 2017 to N24.387 trillion in December 2018, showing an accumulation of a whopping N2.66 trillion in a space of one year.

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    “President Muhammadu Buhari-led administration therefore has a huge explanation to make to Nigerians for its borrowing spree, especially as it cannot point to any meaningful development project into which the borrowed funds were invested.

    “This is particularly against the backdrop of allegations in the public space that the borrowed funds, which were taken as development funds, were diverted to 2019 general elections campaign activities of the All Progressives Congress (APC), a huge part of which ended in private pockets of corrupt APC leaders.

    “This is in addition to direct frittering of public funds through the alleged N1.4 trillion sleazy oil subsidy regime, the looted N9 trillion detailed in the leaked NNPC memo, the alleged N33 billion fraud in the handling of funds meant for the welfare of Internally Displaced Persons (IDPs) in the North East, among other sleazes”.

    The party called on the National Assembly to commence a system-wide investigation into the borrowings by the administration, particularly the terms of the borrowing and the handling of the funds.

    It charged the federal legislature to save the future of the nation by restricting the Buhari administration from taking further loans on behalf of the country until explanations are provided on the terms and handling of the borrowed funds.

    “Nigerians cannot afford to continue to bear the burden of an incompetent and insensitive administration and that is why they eagerly await the retrieval of our stolen mandate at the presidential election petition tribunal”, the statement added.

     

  • Nigeria’s total debt stock grows to 24.3 trillion, says DMO

    The Debt Management Office (DMO) has announced Nigeria’s total debt stock comprising external and domestic debts stand at N24.387 trillion.

    Director General of the DMO Ms. Patience Oniha made this disclosure at the public breakdown of the nation’s public debt data in Abuja on Thursday.

    According to Oniha: “the Total Public Debt stood at N24.387 trillion or USD79.437 billion as at December 31, 2018 representing a year-on-year growth of 12.25%.

    From the breakdown, it was revealed that the FGN External Debt in 2018 was N6. 460 trillion up from N4.527 trillion representing a 42.69% increase.

    “The FGN Domestic Debt in 2018 on the other hand was N12,774 trillion up from N12,589 trillion the previous year representing a 1.46% increase.

    “The sum of both external and domestic FGN debts was put at N19,234 trillion while the total sum of the external and domestic debt stock of the 36 states and the Federal Capital Territory (FCT) was put at  N5,152 trillion broken down as N3,853 trillion domestic debts and N1,298 trillion external debts.”

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    The DMO boss further stated: “Progress was made towards achieving the target Debt Stock mix of 60% (Domestic) and 40% (External). The share of Domestic Debt dropped to 68.18% from 73.36% as at December 31, 2017 thereby achieving a Mix of 68.18% and 31.82% in the Debt Stock.

    “The DMO strategy of using relatively cheaper and longer tenored external funds is achieving the expected objectives.

    “Some of the objectives were: to create more space for other borrowers in the domestic market, extend the average tenor of the debt stock in order to reduce refinancing risk and increase External Reserves.”

    The implementation of the strategy led to an injection of N855 billion through the redemption of Nigerian Treasury Bills in 2018 and a general drop in the FGN’s borrowing rate in the domestic market from over 18% p.a. in 2017 to 14 – 15% p.a. in 2018.

    With regards to the N3.4 trillion Promissory Notes Issuance to Settle Inherited Local Debts, Oniha disclosed that the purpose is to use it to settle Inherited Local Debts and Contractual Obligations of the Federal Government.

    The programme, which is estimated at N3.4trillion, Oniha said covers: Contractors; Exporters; Judgement Debt; State Governments and Oil Marketing companies.

    The features of the promissory notes to be issued are that it will serve as Sovereign and negotiable Instruments and also have Liquid Asset Status.

    The DMO boss stated the FGN’s Domestic Debt Stock includes N331.12 billion Promissory Notes issued to Oil Marketing Companies and State Governments in December 2018.”

    The benefits of issuing the promissory noted the DMO boss stated include: “it will provide stimulus to the economy and unlock investment across a number of sectors currently having liquidity issues; Positive impact on the non-performing loan ratios of banks which will in turn, increase the banks capacity to lend; Enable the Federal Government to formally recognise and account for its true liabilities in line with the International Public Sector Accounting Standards (IPSAS).”

    Some of DMO’s major plans in 2019 are to undertake more of project-tied borrowing and access more external borrowing from Concessional Sources. Furthermore, the DMO announced plans to issue 30-year Federal Government of Nigeria Bonds (FGN Bonds) for the first time.

    “The issuance of the Bond Oniha said: “will meet the needs of annuity funds and other long term investors while also developing the domestic capital market and reducing the re-financing risk of the FGN.”

    Another area of focus in 2019 will be the management of Risks associated with the Debt Stock to mitigate Debt Service Costs.”

    In 2019, Budget Deficit was put at N1. 859 trillion but new borrowings, if passed by the National Assembly have been put at N1.649 trillion.

    By this development, the percentage of Deficit to be Funded by Borrowing in 2019 will 88.7 0%.

    According to Oniha: “the New Borrowing in 2019 (subject to NASS Approval) will be a 50-50 split for Domestic and External both at N824 billion. The domestic borrowing component also known as FGN Bonds, will sourced from Sukuk, Green Bond and Savings Bond while the external (N824 billion) will be largely Concessional, Cheaper and will help reduce Debt Service Cost. Longer-term funds for infrastructure, used to create space for private sector borrowing and Increase External Reserves

    Patience Oniha also explained: “Proceeds of the USD500 million Eurobond raised in November 2017 and USD2.5 Billion were used to redeem the N198.032 billion of Nigerian Treasury Bills (NTBs) that matured in December 2017.

    “Also, USD2.5 billion Eurobond Proceeds (February 2018) were used to redeem N729.95 Billion Nigerian Treasury Bill (NTB) in 2018.”

  • ‘FGN bond auction oversubscribed’

    The trend of oversubscription at Federal Government of Nigeria (FGN) Bond Auctions for the year continued at the February 2019 Auction conducted yesterday by the Debt Management Office (DMO).

    Three instruments, for 5, 7 and 10-year tenors, with a total value of N150 billion were offered but total bids received from investors for the bonds exceeded N234 billion, with a total subscription level of 156 per cent.

    In a statement, DMO said:  “The focus of investors was principally on the 10-year bond which had a subscription level of 392 per cent. “Successful bids were allotted at rates notably lower than those at the January 2019 Auction, with 14.52 per cent for the 5-year, 14.7999 per cent for the 7-year and 14.939 per cent for the 10-year bond. “The DMO allotted the full N150 billion offered to successful bidders across the three tenors.”

  • Investors bid N234bn for N150bn bonds offer — DMO

    The Debt Management Office (DMO) says the Federal Government’s February bonds received over N234 billion from investors for the N150 billion that was offered.

    A statement obtained from the DMO website on Wednesday in Abuja said that the auction had three instruments, for five, seven and 10-year tenors.

    “Total bids received from investors for the bonds exceeded N234 billion, with a total subscription level of 156 per cent.

    “The focus of investors was principally on the 10-year bond which had a subscription level of 392 per cent.

    “Successful bids were allotted at rates notably lower than those at the January auction, with 14.52 per cent for the five year, 14.79 per cent for the seven year and 14.93 per cent for the 10-year bond.”

    It added that the DMO allotted the full N150 billion offered to successful bidders across the three tenors.

    The statement also said that the oversubscription was a continuos trend, judging from the N197 billion subscription it got for N150 billion offered in January.

    However, N116.98 billion was allotted in January.

    In a break down of the auction results for February also obtained from the website, the five-year paper had N9.52 billion subscriptions, but N1.50 billion was allotted, the seven-year had N28.85 billion subscriptions, but N12.25 billion was allotted.

    However, the 10 year bond which investors showed much preference for had N195.98 billion subscriptions and was allotted N136.25 billion.

    Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit. (NAN)

  • FG to auction N150bn bonds on Jan. 30

    The Debt Management Office (DMO) says the Federal Government is to auction by subscription N150 billion worth of bonds on Jan. 30.

    The DMO said in a circular on its website on Wednesday in Abuja, that the five-year re-opening bonds of N50 billion to mature in April 2023 would be offered at 12.75 per cent.

    It said that the seven-year re-opening bonds also of N50 billion to mature in March 2025 would be auctioned at 13.53 per cent.

    It added that the 10-year bonds of N50 billion, which would be due in February 2028, would be auctioned at 13.98 per cent.

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    According to the DMO, the bonds will be sold at N1,000 per unit, subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

    The DMO explained that the bonds were backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while bullet repayment would be made on maturity date.

    Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

    NAN

     

  • Marketers, DMO meet over N800b debt, ultimatum

    …as IPMAN kicks against shutdown move

     

    The Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and the Independent Petroleum Products Importers (IPPIs), Thursday met with the Debt Management Office (DMO) over the N800billion outstanding fuel subsidy debt and the seven day ultimatum to shutdown depots.

    The Nation learnt from a reliable source that the meeting was to avert the threat of the marketers to plunged the country an energy crisis.

    Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) Thursday kicked against any attempt by some groups of oil importers to disrupt the relative peace in the downstream oil sector of the country over the subsidy debts.

    In a statement by the IPMAN National Secretary, Alhaji Danladi Pasali said the seven-day ultimatum issued by the Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and the Independent Petroleum Products Importers (IPPIs), is nothing but intimidation and an attempt to frustrate the effort by government to ensure Nigerians have a hitch-free yuletide celebration.

    The IPMAN scribe said it’s unfortunate that some groups are more concerns of their personal interest above national interest. According to him, it is good for the marketers to ask for their rights but taking such decision to shut down the petroleum sector at this period of festivity is an act of sabotage.

    He said already the Debt Management Office (DMO) has been addressing their concerns when they issued promissory notes to settle the oil marketers’ debts based on approval by the Federal Executive Council (FEC).

    He said the DMO in a statement recently said FEC approved the establishment of the Promissory Note Programme and Bond Issuance to settle inherited local debts and contractual obligations due to various categories of creditors, including Oil Marketers in July 2017.

    Pasali appeal to the marketers to change their tactics by seeking for other alternatives means to push for their demands, rather than blackmail and sabotage.

    He said IPMAN members are aware of the government’s efforts to settle the remaining debts of the subsidy and are determine to assist the government to ensure hitch-free holidays.

    Pasali said IPMAN, as the oldest association of petroleum marketers and regarded as closest to the end users of petroleum products will continue provide services to the public throughout the holidays.

    He urged Nigerians not to be panic by the threat of the MOMAN and their allies, saying that at the moment NNPC controls majority of the fuel available in the country and is nearly the sole importer of the products.