Nigeria Buoyant to Service Domestic, Foreign Debts—DMO

Last month, President Bola Tinubu presented a budget of N47.9 trillion to a joint session of the parliament and it quickly passed the second reading.

The budget is being scrutinised by the legislative arm of government, with the appropriation committees of the Senate and the House of Representatives expected to submit their reports this month for passage and signing into law by Mr Tinubu.

In the 2025 fiscal year, Mr Tinubu projected revenue of N34.82 trillion, with the N13.0 trillion deficits to be financed from fresh borrowings.

The government intends to use N15.81 trillion for debt servicing, with crude oil production at 2.06 million barrels per day, an exchange rate of N1,500/$1, and an inflation rate of 15 per cent.

There have been fears that the government may struggle to repay its debts, but the DMO has allayed such concerns.

In a statement issued on Wednesday in Abuja, the agency said the country’s debt management was in line with relevant laws and international standards.

It noted that the successful pricing of the $2.2 billion last month in the international capital markets, which garnered over $9 billion in subscriptions, was an indication of the confidence investors have in the country.

“Nigeria attracted a wide range of investors from multiple jurisdictions including the UK, North America, Europe, Asia, Middle East and participation from Nigerian investors,” the statement said, adding that, “It is an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.”

“One of the landmark achievements of the Eurobond is that it opened up opportunities for banks and other corporate entities in the Eurobond market,” the DMO stated, noting that the growing interest in FGN bonds, Sukuk bonds, and other FGN securities demonstrates the country’s adherence to best practices in debt management.