DMO raises N1.254 trillion from domestic market
by Onyinye Nwachukwu, Abuja
January 16, 2018 | 10:48 pm| | | Start Conversation
Nigeria’s federal government, has so far raised a total of N1.254 trillion from domestic market to partly fund the N7.44 trillion 2017 budget, the Debt Management Office (DMO) has said.
The money was raised through the issuance of Federal Government of Nigeria Bonds, Treasury Bills, as well as Sukuk Bonds.
The DMO stated that this is in line with its statutory mandate of funding the Federal Budgets.
” This amount was consistent with the provision for New Borrowing in the 2017 Appropriation Act,” the Debt office stressed in a mailed statement to BusinessDay.
The DMO also raised USD2.8 billion in the International Capital Market through a USD300 million Diaspora Bond in June 2017 and a USD2.5 billion Eurobond in November 2017 which together represent about 80% of the N1.0675 trillion (about USD3.5 billion) provided as New External Borrowing in the 2017 Appropriation Act.
The outstanding USD700 million in External Borrowing is expected from multilateral sources.
The federal Government has released a total of N1.2 trillion to finance capital projects budgeted in the 2017 Appropriation Act, the DMO equally stated.
It noted that given that the 2017 Budget was only finalised in July 2017, the disbursement of N1.2 trillion over a short period of 6months to capital, is a strong and positive development for the country.
According to the debt office, the release of such a large amount for capital is a strong demonstration of the commitment of the present administration to prioritise improvement in infrastructure in order to stimulate economic growth and development.
Since the 2017 Budget is still being implemented, the DMO says more releases to capital are expected.
Onyinye Nwachukwu, Abuja
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