By Tony Obiechina, Abuja
The Debt Management Office (DMO) says the N16 trillion proposed by the federal government in the 2025 budget is adequate to meet Nigeria’s foreign and local debt servicing obligations.
The DMO disclosed this in a statement in Abuja on Thursday.
President Bola Tinubu, on Wednesday, December 18, 2024 presented the 2025 budget, titled “Securing Peace, Rebuilding Prosperity,” to a joint session of the National Assembly.
A breakdown of the budget shows that the government hopes to spend N47.90tn in 2025, with a revenue projection of N34.82tn. This will leave a total of N13.08tn, or 3.89 percent of GDP, as the budget deficit.
DMO said Nigeria’s debt management strategy conforms with relevant legislation, regulations, and international standards. It added that the country has always consistently serviced its external and domestic debts, making the country’s security attractive to local and foreign investors.
The DMO also disclosed that the recent issuance of $2.2bn Eurobonds on the international capital markets was oversubscribed by $9 billion.
The DMO said, “Nigeria attracted a wide range of investors from multiple jurisdictions, including the UK, North America, Europe, Asia, the Middle East, and participation from Nigerian investors.
“It is an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.
“The transaction attracted a peak order book 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.”
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