DMO: We’ve raised N3.3trn from domestic markets to fund 2022 budget deficit

The Debt Management Office (DMO) says it raised N3.3 trillion from the domestic market to help the federal government finance the 2022 budget deficit.

Patience Oniha, director-general, DMO, disclosed this at a press briefing in Abuja on Wednesday. 

Oniha said the agency’s efforts to raise funds from the domestic market would not crowd out the private sector.

According to the DMO boss, the agency was allocated N3.56 trillion in revenue to finance the 2022 budget deficit.

“Government borrowing from the domestic market does not crowd out private sector investment in any way,” Oniha said.

Responding to whether there are plans to borrow to fund the 2023 budget, Oniha said borrowing could be hamstrung at the domestic and global markets due to tightened measures. 

“It is difficult to predict the outcome of the market ahead of 2023, which is Nigeria’s election year. But we have also issued N100 billion Sukuk offer for subscription,” she said.

Since the establishment of Sukuk instruments in September 2017, Nigeria has issued four Sovereign Sukuk — 2017 (N100 billion), 2018 (N100 billion), 2020 (N162.557 billion) and 2021 (N250 billion).

On Monday, the DMO opened an offering for a 10-year N100 billion Forward Ijarah (Lease) Sukuk instrument at a rental rate of 15.64 percent per annum, payable half-yearly.

The DMO boss added that the funds raised from the new Sukuk would be used to finance federal road projects on the list of the federal ministry of works and housing as well as the Federal Capital Territory (FCT).