Oniha: FG Raises N4.5tn from Domestic Market to Finance 2024 Budget Deficit

•Naira gains on official, parallel FX markets

Nume Ekeghe and Kayode Tokede

The Director-General, Debt Management Office (DMO), Ms. Patience Oniha, yesterday disclosed that N4.5 trillion has been raised out of N6 trillion to support the federal government in financing 2024 budget deficit, stressing that domestic securities market has remained the major source of borrowing for the government.

Speaking at an interactive session with Primary Dealers Market Makers (PDMMs) in Lagos, she also disclosed that out of the N7.3 trillion the National Assembly approved for securitisation of Ways & Means, DMO has raised N4.905 trillion.

She explained: “With your support for the new borrowing for the 2024 budget which is N 6 trillion, we have raised N4.5 trillion. For the Ways & Means, out of the N7.3 trillion that the National Assembly approved for securitisation, we have raised N4.095 trillion as of Friday. There is still a balance and let’s see how the rest of the year goes.

“The Nigerian domestic securities market remains a major source of funding for the FG. We cannot appreciate the work we have done collectively all these years. COVID-19 came; countries could not go to international capital markets as they were closed. But we were able to raise the full amount we needed to fund the budget and that has been the case.

“Last year we raised N7 trillion from the domestic market and it speaks to the size of our market, the resilience and sophistication, which is not the case for some countries in Africa.”

Speaking also, the President, Financial Market Dealers Association (FMDA), Mrs Nadia Zakari, acknowledged the debt office for hosting the interactive session, stressing that the evolving and unique Nigerian business environment necessitates interactive sessions.

“Having that consistent engagement with stakeholders is very crucial and it is important for both market operators as well as FG to be able to make decisions as they strategically plan for the rest of the year,” she added.

Meanwhile, the naira yesterday continued its upswing yesterday, as it recorded gains at both the official window and the parallel markets.

At the official Nigerian Autonomous Foreign Exchange Market (NAFEX) window, the naira appreciated by N28.34, to close at N1,468.99/$1, compared to the N1,497.33/$1 which closed on Friday.

On the parallel market, the naira also recorded gains by N10 as it closed yesterday at N1,440/$1, compared to the N1,450/$1 it exchanged over the weekend.

The daily turnover recorded an increase in transactions of 93.36 per cent, to $161.41 million yesterday, compared to the $83.50 million recorded on Friday. 

The highest spot rate observed yesterday stood at N1,550, with the lowest spot rate recorded at N1,400.