The DMO received the Management of the Fiscal Responsibility Commission (FRC) led by its Chairman, Barr. Victor Muruako in Abuja on Thursday April 22, 2021
Thursday, 22 April 2021 16:16
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DMO In The News
Press Release on Listing of ₦162.557 Billion 7-Year 11.200% AL IJARAH Sovereign Sukuk Due 2027 on The Nigerian Stock Exchange and FMDQ Securities Exchange
Thursday, 18 March 2021 12:08
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DMO In The News
The Debt Management Office (DMO) will today list its third Sovereign Sukuk “₦162.557 BILLION 7-YEAR 11.200% AL IJARAH SOVEREIGN SUKUK DUE 2027” on The Nigerian Stock Exchange and the FMDQ Securities Exchange. The Sukuk which at the time of issuance was massively subscribed to the tune of ₦669.124 Billion or 446%, was issued to finance 44 economic road projects across the six (6)-geopolitical zones. With the listing, investors who are already holding the SUKUK can trade them while new investors have an opportunity to buy the SUKUK in the secondary market.
Press Release: Public Debt Data as at December 31, 2020
Tuesday, 16 March 2021 13:21
Published in
DMO In The News
Nigeria’s Total Public Debt as at December 31, 2020 was N32.915 Trillion. The figures include the Debt Stock of the Federal and State Governments, as well as, the Federal Capital Territory.
It will be recalled that after Nigeria exited recession in 2017, the level of New Borrowing at the Federal Level as shown in the Annual Appropriation Acts, had been declining as part of the Government’s measures to moderate the rate of Growth in the Public Debt Stock in order to ensure debt sustainability. New Borrowing to part finance Budget Deficits had declined steadily from N2.36 Trillion in 2017 to: N2.01 Trillion in 2018, N1.61 Trillion in 2019 and N1.59 Trillion in the first 2020 Appropriation Act. This trend was reversed in 2020 due to the economic and social impact of the COVID-19 Pandemic as New Borrowing in the revised 2020 Appropriation Act was N4.20 Trillion. Many countries including the advanced countries also increased their level of borrowing as a result of COVID-19.
It should be noted though, that apart from the New Domestic Borrowing of N2.3 Trillion, the other New Borrowings were concessional Loans from the International Monetary Fund (USD3.34 Billion) and other multilateral and bilateral lenders. This incremental borrowing to part-finance the 2020 Budget and the additional issuance of Promissory Notes to settle some arrears of the Federal Government of Nigeria, contributed to the increase in Public Debt Stock. New Domestic Borrowings by State Governments also contributed to the growth in the Public Debt Stock.
Total Public Debt to Gross Domestic Product as at December 31, 2020 was 21.61% which is within Nigeria’s new Limit of 40%. The various initiatives of Government to increase revenues such as the Strategic Revenue Growth Initiative and the Finance Act, 2020, should help shore up Government’s revenue and reduce the Debt Service to Revenue Ratio.
DEBT MANAGEMENT OFFICE
The Presidency
NDIC Building (First Floor),
Plot 447/448 Constitution Avenue,
Central Business District,
P.M.B. 532, Garki, Abuja
Tel: +234 - 8110000881-3
Website: http://www.dmo.gov.ng,
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
March 15, 2021
Press Release: Clarification on the "N2.2 Trillion Debt Service Provision in the 2018 Appropriation Act"
Monday, 01 March 2021 18:30
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DMO In The News
The attention of the Debt Management Office (DMO) has been drawn to the allegations by some media outlets that the Debt Management Office (DMO) was unable to account for the ₦2.2 trillion allocation to the DMO in the 2018 Appropriation Act. The statement is not only false, but extremely misleading.
The media outlets made the statement following the DMO’s appearance at the hearing of the Public Accounts Committee of the House of Representatives on Friday, February 26, 2021. At the session, the Committee enquired about the utilisation of the ₦2.2 trillion provided in the 2018 Appropriation Act; of which N2.1 trillion was allocated for Debt Service and the DMO’s appropriation of ₦721,251,798.00, making it ₦2.2 trillion.
The DMO explained to the Public Accounts Committee that the amount of ₦2.2 trillion was not available as the DMO’s total allocation since ₦2.1 trillion was specifically meant for servicing of Nigeria’s Domestic and External Debt. This explains why the Debt Service is expressly stated as a separate line item in the annual Appropriation Acts, while the DMO’s Expenditure is also stated separately.
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Press Release on Medium Term Debt Management Strategy February 10, 2021
Wednesday, 10 February 2021 14:32
Published in
DMO In The News
Federal Executive Council Approves a New Debt Management Strategy for Nigeria
The Federal Executive Council (FEC) at its meeting today, February 10, 2021, approved a new Medium-Term Debt Management Strategy for Nigeria, for the period 2020-2023. The Medium-Term Debt Management Strategy (MTDS) is a policy document that provides a guide to the borrowing activities of a Government in the medium-term, usually four (4) years. It is recognized as one of the best practices in public debt management and is recommended by the World Bank (WB) and International Monetary Fund (IMF) to ensure that public debt management is driven by a well-articulated Strategy that is structured to meet a country’s broader macroeconomic and public debt management objectives. The MTDS, 2020-2023 has been prepared by the Debt Management Office (DMO), in collaboration with relevant stakeholders (Federal Ministry of Finance, Budget and National Planning, Central Bank of Nigeria, Budget Office of the Federation, National Bureau of Statistics and the Office of the Accountant-General of the Federation).
2. Nigeria has had two (2) Medium Term Debt Management Strategies (2012-2015 and 2016-2019), prior to the current Strategy. The new Strategy had to be re-worked to reflect the global and local economic impact of the COVID-19 Pandemic and incorporates data from the revised 2020 Appropriation Act and the Medium-Term Expenditure Framework 2021-2023. Thus, the new MTDS adequately reflects the current economic realities and the projected trends.
3. The preparation of the MTDS usually involves the consideration of alternative funding strategies available to Government, as it seeks to meet its financing needs, taking into consideration the cost of borrowing and the associated risks, while ensuring debt sustainability in the medium to long-term.
4. The 2016-2019 MTDS included some Debt Management Targets. The Targets and the Actuals at the end of the Strategy period, (that is, as at December 31, 2019) are shown in Table 1. As can be seen from the Actual Outcome, the MTDS, 2016-2019 was
applied in the borrowing activities of the Government during the period which led to the high success rates achieved.
TABLE 1: MTDS, 2016-2019: TARGETS AND ACHIEVEMENTS
| S/N | Indicator |
Actual Dec. 31, 2015 |
Target 2016-2019 |
Actual Dec. 31, 2019 |
Remarks |
| 1 |
Fiscal Sustainability: Total Public Debt as % of GDP |
10.35% |
Max. 25% |
19.00% |
Achieved |
| 2 |
Portfolio Composition: Domestic : External Debt Mix |
84:16 |
60:40 |
67:33 |
Significant Improvement |
| 3 |
Refinancing Risk: i. Average Tenor of Debt Portfolio
ii. Long-Term:Short-Term Domestic Debt Mix |
7.15 years
71:29 |
Min. 10 years
Min.75:Max.25 |
10.5 years
79:21 |
Target was exceeded
Target was exceeded |
The New MTDS, 2020-2023 and the Debt Management Targets
5. Based on the current Public Debt Stock, Government’s borrowing needs in the medium-term (as stated in the 2021 Appropriation Act, MTEF, 2021- 2023), as well as future global trends, Nigeria’s 2020-2023 MTDS can be summarized as follows: “Borrowing will be from domestic and external sources but a larger proportion of new borrowing will be from domestic sources using long-term instruments while for External Borrowing, concessional funding from multilateral and bilateral sources will be prioritised”. The new Targets for the MTDS 2020-2023 are shown in Table 2.
TABLE 2: MTDS, 2020-2023 TARGETS
| S/N | Indicator |
Target 2020-2023 |
Justification |
| 1 |
Fiscal Sustainability: Total Public Debt as % of GDP |
Max. 40% |
|
| 2 |
Portfolio Composition: Domestic : External Debt Mix |
Max.70:Min.30 |
|
| 3 |
Refinancing Risk: i. Average Tenor of Debt Portfolio
ii. long-Term:Short-Term Domestic Debt Mix |
Min. 10 years
Min.75:Max.25
|
|
Conclusion
6. The implementation of the Medium-Term Debt Management Strategies over the years, has helped in managing the structure of the growing public debt, and ensured debt sustainability, as well as effectiveness in public debt management. With the approval of the Federal Executive Council of the MTDS, 2020-2023, the Strategy will be implemented to support economic development while ensuring that the Public Debt is sustainable.
DEBT MANAGEMENT OFFICE
The Presidency
NDIC Building (First Floor),
Plot 447/448 Constitution Avenue,
Central Business District,
P.M.B. 532, Garki, Abuja
Tel: +234 - 8110000881-3
Website: http://www.dmo.gov.ng,
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
February 10, 2021
Nigeria Redeems USD500 Million Eurobond
Thursday, 28 January 2021 12:42
Published in
DMO In The News
The Debt Management Office (DMO) has announced that Nigeria’s 6.75% USD500M JAN 2021 Eurobond which matures on January 28, 2021 will be redeemed. For this purpose, funds have been made available by the Federal Government of Nigeria to the Fiscal Agent to repay the principal sum of USD500 million and final Interest payment due on the Eurobond.
By this development, Nigeria continues to demonstrate in practical terms, its commitment towards honouring all its debt service obligations as and when due.
DEBT MANAGEMENT OFFICE
The Presidency
NDIC Building (First Floor),
Plot 447/448 Constitution Avenue,
Central Business District,
Tel: +234 - 8110000881-3
Website: http://www.dmo.gov.ng,
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
January 28, 2021
DMO Social Gathering to Mark It's 20th Anniversary
Tuesday, 05 January 2021 16:24
Published in
DMO In The News
Press Release: Public Debt Stock as at September 30, 2020
Thursday, 31 December 2020 16:12
Published in
DMO In The News
DEBT MANAGEMENT OFFICE
NIGERIA
PRESS RELEASE
PUBLIC DEBT STOCK AS AT SEPTEMBER 30, 2020
The Q3, 2020 Total Public Debt Stock released by the Debt Management Office (DMO), revealed that the Total Public Debt Stock stood at N32.223 Trillion or USD84.574 Billion. The Debt Stock is made up of the Domestic and External Debt Stocks of the Federal Government of Nigeria (FGN), the 36 State Governments and the Federal Capital Territory (FCT). The break down of the Public Debt Stock showed that 37.82% was External, while the balance of 62.18% was Domestic.
Compared to the Total Public Debt Stock of N31.009 Trillion as at June 30, 2020, the Debt Stock in Q3 2020 increased by N1.214 Trillion or 3.91%. The FGN, State Governments and the FCT all recorded increases in their Debt Stock due to borrowings to enable them respond appropriately to the COVID-19 Pandemic and to meet revenue shortfalls. Issuance of Promissory Notes by the FGN to settle inherited liabilities have also contributed to the growth in the Public Debt Stock since the year 2018 when they were first issued. While N20.136 Billion of Promissory Notes were issued in Q3, 2020, as at September 30, 2020, the Promissory Notes Outstanding, which are all included in the Domestic Debt Stock, stood at N971.878 Billion.
DEBT MANAGEMENT OFFICE
The Presidency
NDIC Building (First Floor),
Plot 447/448 Constitution Avenue,
Central Business District,
Tel: +234 - 8110000881-3
Website: http://www.dmo.gov.ng,
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
December 31, 2020