The Debt Management Office (DMO) has assured that it will not exceed the legally approved new borrowing in the 2023 Appropriation Act.
The DMO was reacting to a report that the Federal Government had borrowed N2.13 trillion between January and February this year through regular bond issuance, the retail savings bonds and treasury bills.
The report also raised the alarm that at that rate, the nation may exceed its estimated domestic borrowings of N7.04 trillion for 2023. In January 2023, the government raised N662.617 billion through its regular bond auction, N277.468 billion through the Nigerian Treasury Bills (NTBs) and N533.03 million through the Federal Government of Nigeria Savings Bonds (FGNSBs), a retail monthly debt issuance introduced in 2017.
This month, the government raised N770.56 billion through bond auctions, N417.064 billion through NTBs and N1.271 billion through the FGNSBs. But in a reaction pasted on its website, the DMO said its domestic issuance programme is 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 should be noted that the balance of the funds raised is for refinancing of maturing obligations,” DMO stated.
