The Director General Debt Management Office (DMO), Dr. Abraham Nwankwo, has assured the public that Nigeria has a sustainable debt profile.
Nwankwo who reiterated this with the achievements that have been made in the country’s debt portfolio as well as the Bond Market also assured that the proposed Diaspora bond would be concluded by the end of the year and would come on stream in 2014 to give the Nigeria Diaspora the opportunity to invest in FGN’s Bonds.
Speaking at a retreat organized by the DMO in Kaduna for Finance Correspondents Association of Nigeria (FICAN), with the theme: “Opportunity for the Private Sector from Public Debt Management Activities,” on Friday the DMO boss said the debt office had created opportunities for the private sector to raise long -term capital for the development of the real sector and infrastructure.
He disclosed that already some private sector firms have explored and exploited the opportunities both in the Domestic Bond Market and International Capital Market.
In response to the favourable domestic market environment, 20 Nigerian corporates are said to have raised long-term capital of over N200 billion from the domestic debt market between 2005 and 2012 to fund the development of the real sector.
Also, through a sovereign benchmark in the International Capital Market created by the DMO, four indigenous corporates (financial institutions) are said to have taken the advantage to issue Eurobonds between January, 2011 and July, 2013 which amounted to $1.45 Billion.
The banks are: Guaranty Trust Bank Plc., Access Bank plc., Fidelity Bank plc., and First Bank Nigeria plc.
Recounting the achievements in the country’s debt management as well as the Bond Market, Nwankwo disclosed that there have been increased foreign exchange inflows, which have contributed to the growth in external reserves and stability of the Naira.
His words: “As at the end of December 2012, foreign investors holdings in FGN securities amounted to US$5.112 billion, compared to about US$500 million it was at end-January 2012.
“Increase in the relative share of foreign investors’ holding in FGN securities, while foreign investors accounted for near 0% in Q1 of 2011 and their share had increased to 19.52% as at the end of 2012”.