Patience Oniha, Director General of the Debt Management Office (DMO), has said that the federal government has raised N4.5 trillion out of the N6 trillion domestic borrowing objective in the 2024 budget thus far.

The DG of the Debt Management Office mentioned that one of the key sources of federal government spending is still domestic securities.

Oniha made this statement in Lagos during an interactive session with primary federal government securities market dealers.

She mentioned that one of the critical sources of federal government spending is still domestic securities.

Through the DMO, the federal government realised approximately N418.19 billion from the domestic bond market in January.

Similarly, in February, The Guardian reported that it raised N1.49 trillion through the sale of two FGN bonds.

With a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000, both bonds were newly minted and offered at a unit price of N1,000.

Despite a higher interest rate, the federal government raised only N475.67 billion in March, a significant decrease from the amount reported in February.

In April 2024, the federal government held a FGN bond auction, raising N626.813 billion.

The amount raised at the sale the previous month to N475.67 billion shows a gain of about 32%.

The DMO boss said: “Last year, we raised N7 trillion as new domestic borrowing. It speaks to the size of the domestic market, its resilience, and its sophistication, unlike we have in many African markets.

“Out of the new domestic borrowing of six N7 trillion, we have raised N4.5 trillion. For the Ways and Means, out of N7 trillion approved for securitisation, we have raised N4.905 trillion. The financial sector has come a long way, and this is another strategic meeting to chart a way forward.”

According to Nadia Zakari, President of the Financial Market Dealers Association (FMDA), interactive sessions are essential given Nigeria's dynamic and distinct business environment.

To enable informed decision-making as they make plans for the remainder of the year, Zakari stressed how important these meetings are for both market operators and the federal government.

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Legit.ng reported that the Nigerian government spent about $1.2 billion servicing foreign debts in the first quarter of 2024, showing the rising debt service burden on the country.

According to data from the Central Bank of Nigeria (CBN), debt service payments have risen steadily over the past years.

In the first quarter of 2023, debt service hit $801.36 million and grew by 39.7% in Q1 2024 to $1.12 billion.