DMO secures budgetary approval for N1.7 trillion in new external borrowing

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DMO secures budgetary approval for N1.7 trillion in new external borrowing
DMO secures budgetary approval for N1.7 trillion in new external borrowing

The Debt Management Office (DMO) of Nigeria has disclosed its budgetary approval to secure N1.7 trillion in external debt borrowing, equivalent to approximately $2 billion.

Ms. Patience Oniha, the Director General of DMO, made this announcement during the 2023 Annual Business Summit organized by the Capital Market Solicitors Association (CMSA) in Lagos.

During a fireside chat at the summit, themed ‘Recent Developments in Sub-Saharan African Sovereign Debt: Implications for Nigeria,’ Oniha clarified the value of the budgetary approval.

She explained that the decision not to issue a Eurobond at present is due to market conditions.

The market has not been accessible to many African countries, with no African nations having successfully issued Eurobonds throughout the current year.

However, Oniha mentioned that DMO is in collaboration with international banks and remains in the queue, waiting for the market to open and offer favorable rates.

Once these conditions are met, Nigeria will proceed with its external borrowing plans.