The Debt Management Office (DMO) has said that Nigeria is fully committed to meeting its debt obligations, assuring that the country has made adequate budgetary provisions to meet its debt obligations following the issuance of $2.2 billion eurobonds.
The DMO in a statement on Wednesday, said Nigeria has consistently serviced its external and domestic debts promptly, leading to increased investor interest in federal government bonds.
It said this reflects the country’s strict adherence to best practices in debt management.
According to the DMO, the country’s ability to meet its debt obligations is supported by effective planning and allocation through the medium-term expenditure framework (MTEF) and annual budgets.
The DMO also assured that Nigeria’s debt management is carried out in accordance with relevant legislations and regulations, aligning with international practices.
The DMO had earlier announced that Nigeria raised $2.2 billion in the international capital market through its latest eurobond auction, marking the federal government’s return to the market after two years. Nigeria attracted a wide range of investors from multiple jurisdictions including the UK, North America, Europe, Asia, Middle East and participation from Nigerian investors,” the statement reads.
“It is an expression of continued investor confidence in the country’s sound macroeconomic policy framework and prudent fiscal and monetary management,” DMO said, adding that the transaction attracted a peak orderbook of more than nine billion dollars.
“This underscores the strong support for the transaction across geography and investor class.
“In addition, one of the landmark achievements of the eurobond is that it opened up opportunities for banks and other corporate entities in the eurobond market,” DMO said.
The DMO said Nigeria’s borrowing has contributed to establishing a robust domestic capital market, attracting both local and foreign investors even though experts are of the opinion that the country should reduce its reliance on borrowing to fund its budget as the cost of servicing the the loans is eating into the revenue available for other social services.