DMO raises N4.9trn for ways and means, says domestic market major source of funding for FG

The Debt Management Office (DMO) has disclosed that it has raised N4.9 trillion out of the N7.3 trillion approved for Ways and Means securitisation.

This is even as the DMO disclosed that the Nigerian domestic securities market remains a major source of funding for the Federal Government.

Patience Oniha, DMO’s Director-General (DG), made this known on Monday during an interactive session with primary dealers in the federal government securities market in Lagos.

“For the Ways and Means, out of seven trillion approved for securitisation, we have raised N4.905 trillion,” Oniha said.

She also said N4.5 trillion has been raised to partly finance the N6 trillion budget deficit.

According to Oniha, when the international markets were closed during the COVID-19 period, the government was able to raise the full amount needed to fund the budget.

“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 what we have in many African markets,’’ she said.

READ ALSO:DMO to raise N450bn in April bond auction

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.

She said the domestic financial market remains a major source of funding for the federal government.

Also speaking, Nadia Zakari, president of the Financial Market Dealers Association (FMDA), said the Nigerian business environment is evolving and unique, making interactive sessions necessary.

Zakari said these sessions are crucial for both market operators and the government to make informed decisions as they plan for the rest of the year.

By; Babajide Okeowo

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