According to the Debt Management Office (DMO), the Nigerian domestic securities market continues to be a significant source of finance for the federal government.
Patience Oniha, Director-General of the DMO, stated this on Monday in Lagos during an interactive session with main dealers in the Federal Government securities market. According to Oniha, even though the foreign markets were closed during COVID-19, we were able to raise the entire budget amount.
“Last year, we raised seven trillion Naira 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,’’ she said.
Oniha said that the 2024 budget had a deficit of six trillion Naira to be financed through new domestic borrowing. She said that the National Assembly also approved N7.3 trillion Ways and Means for securitisation.
“Out of the new domestic borrowing of six trillion Naira, we have raised N4.5 trillion. For the Ways and Means, out of seven 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,’’ Oniha said.
Mrs Nadia Zakari, the President, Financial Market Dealers Association (FMDA), said that the Nigerian business environment was evolving and unique, necessitating such interactive sessions.
According to Zakari, such sessions are critical for both market operators and the Federal Government for them to be able to make decisions as they plan for the rest of the year.
“We stand as financial intermediaries, and we are in a very important position of interacting with other market operators, the end investors and the DMO,’’ she said.
