DMO clarifies report on FG borrowing N2.13trn in two months

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

The media report further alleged that at this rate of borrowing, the Government might exceed its domestic deficit funding requirement of N7.043 trillion in 2023.

In a statement released by the Debt Management Office, the agency said the Domestic Issuance Programme was designed not only to provide funds to finance the budget deficit but to also refinance the FGN’s maturing obligations during the fiscal year.

It added that a total of N2.129 trillion had been raised in January and February from issuances of FGN Bonds, 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 added.