DG says FG will reduce borrowing cost

The Federal Government will implement prudent fiscal and debt management in the coming years to reduce the nation’s debt cost, the Debt Management Office (DMO) has said.

Ms Patience Oniha, the DMO Director-General, made this assertion on Thursday in Lagos.

Oniha spoke at the listing of the FGN 30 year 1.5 billion dollars Euro Bond and FGN 10 year 1.5 billion dollars Euro Bond on the Nigerian Stock Exchange (NSE).

Other bond listed was FGN 5 Year 300 million dollars Diaspora Bond.

She said that government was listing some of the securities issued in the international capital market in 2017 on the NSE because of the role of Nigerian capital market in economic development.

“We have already listed N1.5 billion early in the year, and we are coming toward the end of the year to list 3.3 billion dollars Euro Bond.

Oniha said that government had assessed the international capital markets four times in 2017 and achieved overwhelming success amidst uncertainty about the perception of Nigeria.

She said that funding of the budget deficit and refinancing the government’s inherited debt portfolio had been the key drivers behind the capital raising plans.

According to her, the borrowing will lead to significant benefits, particularly a reduction in cost of funds.

She said that the Diaspora bond provided an opportunity for Nigerians in Diaspora to contribute to the country’s development.

She also said that the Diaspora bond had boosted the country’s profile with Nigeria’s first SEC-Registered debt instrument.

Oniha said that funds raised would be applied toward development and to support government drive toward economic diversification from oil revenue and to sustain momentum in tapping the international markets following prior issuances.

The director-general said that DMO would continue with innovative and diverse fund raising plans to ensure the optimal funding structure.

Earlier, Mr Oscar Onyema, the NSE Chief Executive Officer, said that the Federal Government was the largest issuer of bonds on the exchange,

Onyema said that the exchange had collaborated with DMO and the federal government to introduce other types of bonds in the market.

He assured the investing publics that the exchange would introduce other types of products that would give them good asset class to boost product diversification.