DMO clarifies alleged N2trn FG borrowing

The Debt Management Office (DMO) on Tuesday clarified media reports that claimed that the Federal Government of Nigeria had raised the sum of N2.129 trillion between January and February 2023 through the issuance of Domestic FGN Securities.

The reports also alleged that government might exceed its domestic deficit funding requirement of N7.043 trillion at this borrowing rate in 2023.

A statement released by the DMO said the Domestic Issuance Programme was designed to provide funds to finance the budget deficit and refinance FGN’s maturing obligations during the fiscal year.

It explained  that N2.129 trillion had been raised in January and February from FGN Bonds issued, Nigerian Treasury Bills and FGN Savings Bond, while only N1 trillion had been deployed in deficit financing, representing 14.2% of the total requirement of N7.043 trillion for the year.

The DMO also noted that the balance of the funds raised was for refinancing maturing obligations.

“While the DMO is maximizing the opportunity provided by the strong investor demand to raise funds to facilitate early implementation of the 2023 Budget, the DMO is always guided by the law and, thus, cannot exceed the legally approved New Borrowing in the Appropriation Act,” the statement explained.