DMO: No approvals from FEC, national assembly for eurobond issuance

The Debt Management Office (DMO) says it has not received approval for the appointment of advisers and eurobond issuance.

On March 13, there were reports Nigeria had hired investment banks to seek advice on its first eurobond issue since 2022.

According to reports, the size of the eurobond offer, expected before June, is yet to be determined but the federal government could raise as much as $1 billion in external borrowing in 2024 to meet its spending needs.

However, in a statement on Friday, DMO said it has not appointed transaction advisers.

“The appointment of Transaction Advisers by the DMO is done in accordance with the provisions of the Public Procurement Act, 2007 and is subject to the approval of the Federal Executive Council (FEC),” DMO said.

“Also, the Issuance of Eurobonds by the Federal Government of Nigeria in the International Capital Market is subject to the approval of the FEC and receipt of the Resolution of the National Assembly (NASS) in accordance with the provisions of the Fiscal Responsibilities Act, 2007 and Debt Management Office (Establishment, Etc.) Act, 2003.

“Currently, the DMO has not received the requisite approvals from the FEC and Resolution of the NASS for any Eurobond Issuance.”

The agency also encouraged the public to rely on official statements from the DMO for accurate updates on Nigeria’s debt management activities.

In August 2021, the federal government appointed transaction advisers to facilitate the issuance of Eurobonds in the international capital market.