The Federal Government of Nigeria has set aside a significant N16.327 trillion for debt servicing in its proposed 2025 budget, signaling its commitment to meeting both local and international debt obligations. This allocation, part of the N49.7 trillion budget currently under review by the National Assembly, underscores the administration’s strategy to stabilize the economy while maintaining investor confidence.
The Debt Management Office (DMO) emphasized in a statement that Nigeria’s debt management approach aligns with global standards and legal frameworks. The agency highlighted the country’s track record of consistently servicing external and domestic debts, positioning Nigeria as a reliable player in the global financial market.
Recent successes in the international capital markets have further validated this confidence. Notably, the issuance of $2.2 billion in Eurobonds attracted an overwhelming $9 billion in subscriptions from investors across the UK, North America, Europe, Asia, and the Middle East, as well as Nigerian stakeholders. This strong interest, according to the DMO, reflects trust in Nigeria’s sound fiscal policies and prudent economic management.
The Minister of Finance, Wale Edun, described the Eurobond issuance as a testament to growing international confidence in Nigeria’s economic reforms. “The broad range of investor appetite is encouraging as we continue to diversify funding sources and deepen engagement with international capital markets,” he said.
Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), echoed similar sentiments, praising the resilience of Nigeria’s credit and the robust investor interest.
The DMO also pointed to the growing appeal of Federal Government securities, including Sukuk bonds and treasury instruments, as evidence of Nigeria’s adherence to best practices in debt management. These instruments have bolstered the domestic capital market, drawing a diverse range of local and foreign investors.
Assuring stakeholders, the DMO confirmed that sufficient provisions for debt servicing are embedded in the Medium-Term Expenditure Framework (MTEF) covering 2025-2027. The agency further credited government borrowing with deepening the domestic capital market, fostering economic growth, and creating investment opportunities.
As Nigeria charts its path forward, the Federal Government’s efforts to balance debt obligations with economic stability continue to earn international acclaim, reinforcing the country’s standing in the global financial landscape.