May 20, 2024

DMO raises N4.9trn for Ways and Means securisation

Ways and Means

DMO-debt management office

By Yinka Kolawole, with agency report

The Debt Management Office (DMO) said it has raised N4.9 trillion out of the N7.3 trillion approved for Ways and Means securitisation.

Director General of DMO, Patience Oniha, disclosed this, yesterday, during an interactive session with primary dealers in the federal government securities market in Lagos.

“For the Ways and Means, out of the N7 trillion approved for securitisation, we have raised N4.905 trillion,” Oniha said.

She said the domestic financial market remains a major source of funding for the federal government.

According to her, N4.5 trillion has been raised to partly finance the N6 trillion budget deficit, adding that the deficit will be covered by new domestic borrowing.
“Out of the new domestic borrowing of N6 trillion, we have raised N4.5 trillion,” she stated.

The DMO DG recalled that when the international markets were closed during the COVID-19 period, the government was able to raise the full amount needed to fund the budget.

“Last year, we raised N7 trillion as new domestic borrowing. It speaks to the size of the domestic market, its resilience, and its sophistication, unlike we have in many African markets,’’ she noted.

Oniha said the financial sector has come a long way, and the interactive session is another strategic meeting to chart a way forward.

Also speaking during the session, President of the Financial Market Dealers Association (FMDA), Nadia Zakari, said that the Nigerian business environment is evolving and unique, which makes interactive sessions necessary.

Zakari said these sessions are crucial for both market operators and the government to make informed decisions as they plan for the rest of the year.

Recall that on December 30, 2023, the National Assembly approved President Bola Tinubu’s request for the securitisation of outstanding N7.3 trillion ways and means debt balance.