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FEC, NASS yet to approve Eurobond transaction advisers  – DMO

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Abuja, March 16, 2024: The Debt Management Office (DMO), says appointment of Transaction Advisers for issuance of Eurobond is subject to approval of the Federal Executive Council (FEC).

The Director-General of the DMO, Patience Oniha said on Saturday in Abuja on media reports that a company linked to the Minister of Finance, Mr Wale Edun, was appointed as one of the Transaction Advisers for a potential one billion dollars Eurobond.

She said said approval of the National Assembly (NASS) was also a prerequisite for such appointment.

According to her, 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 FEC.

She said that recent news reports suggesting the appointment of Transaction Advisers for a potential Eurobond issuance were inaccurate.

The director-general said that the debt office was yet to get approval from FEC or NASS for issuance of Eurobond.

“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 NASS.

“This is done in accordance with the provisions of the Fiscal Responsibility 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.

“We encourage the public to rely on official statements from the DMO for accurate updates on Nigeria’s debt management activities,” she said.

The company in question, Chapel Hill Denham, was one of the five issuing houses appointed in 2021 during former President Muhammadu Buhari led government as Transaction Advisers for Nigeria’s Eurobonds.

The other appointed companies were Citigroup Inc., JPMorgan Chase & Co., Goldman Sachs Group Inc., and Standard Chartered Bank.

With that set of Transaction Advisers, Nigeria issued a total of 5.25 billion dollars Eurobonds in 2021.

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DMO offers 2 FGN savings bonds for subscription for February

Abuja, Feb. 6, 2024: The Debt Management Office (DMO) has announced two Federal Government of Nigeria (FGN savings bonds for subscription at N1,000 per unit.

The first offer, according to the DMO, is a two-year FGN savings bond due on Feb. 14, 2025, at interest rate of 12. 75 per cent per annum.

The second offer is a three-year FGN savings bond due on Feb 14, 2026, at 13.75 per cent per annum.

Opening date is Feb. 4, closing date is Feb. 9, settlement date is Feb. 14, while coupon payment dates are May 14, Aug. 14, Nov. 14 and Feb. 14.

The debt office announced that the bonds are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Interest is payable quarterly while bullet repayment is on maturity date,” the DMO said.

It assured that FGN savings bonds, like all other FGN securities, are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustees Investment Act.

“Qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension fund amongst other investors.

“Listed in the Nigerian Stock Exchange Limited, and qualify as liquid asset for liquidity ratio calculation for banks,” it said.

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DMO lists 2 savings bonds for subscription in first 2024 offer

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Abuja, Jan. 8, 2024: The Debt Management Office (DMO) listed two Federal Government of Nigeria savings bonds on Monday for subscription at N1,000 per unit.

They are the first offers in 2024.

The first offer is a two-year savings bond due to mature on Jan. 17, 2026 at 11.033 per cent per annum.

The second offer is a three-year savings bond due to mature on Jan. 17, 2027, at an interest rate of 12.033 per cent per annum.

Opening date for both offers is Jan. 8, while the closing date is Jan. 12; settlement is Jan. 17, and coupon payment dates are April 17, July 17, Oct. 17 and Jan. 17.

“They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Interest is payable quarterly while bullet repayment is made on maturity date,’’ the DMO stated.

The savings bonds, like all other Federal Government securities are backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustees Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption and pension funds, amongst other investments,’’ the DMO stated.

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DMO auctions 4 FGN bonds valued at N360bn

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Abuja, Dec. 6, 2023: The Debt Management Office (DMO), on Tuesday announced the offer for subscription of four Federal Government of Nigeria (FGN) bonds valued at N360 billion through auction.

According to a statement issued by the DMO, the first offer is April, 2029 FGN bond valued at N90 billion, at interest rate of 14.55 per cent per annum (10-year re-opening).

The second offer is a June, 2033 FGN bond valued at N90 billion, at 14.70 per cent interest rate per annum (10-year re-opening).

There is also the June, 2038 FGN bond valued at N90 billion, at interest rate of 15.45 per cent per annum (15-year re-opening).

The fourth offer is a June 2053 FGN bond, also valued at N90 billion, at interest rate of 15.70 per cent per annum (30-year re-opening).

“Auction date is Dec.11 and settlement date is Dec. 13.

“They are offered at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

“For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned. plus any accrued interest on the instrument,” the DMO said.

It said that interest on FGN bond was paid semi-annually while the bullet repayment was on the maturity date.

The DMO gave the assurance that FGN bonds like all other FGN securities, were backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustees Investment Act.

“Qualify as government securities within the meaning of Company IncomeTax Act and Personal Income Tax Act for tax exemption for pension funds among others.

“They are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange,” it said.

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DMO happy over response to securities issuance

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Kaduna, Nov. 24, 2023: The Debt Management Office says it is impressed at the response of investors to its awareness programme on the benefits of investing in Federal Government of Nigeria (FGN) securities.

Mrs Jumai Saidu-Ahmed, the Team Leader, Domestic Debt Unit of the DMO said this on Thursday on the sidelines of the FGN Securities Issuance Awareness Programme in Kaduna.

According to Saidu-Ahmed, the programme is a collaborative effort between the DMO and CSL Stockbrokers Limited, the stockbroking firm of the Federal Government.

“It has contributed in no small measure to enlightening potential Nigerian investors on the benefits of investing in FGN securities,” she said.

She said that the improved response from investors to the various FGN securities offer like the recently offered FGN bond. FGN savings bond and the Sukuk was proof that the awareness had been impactful.

She said that the DMO was determined to sustain the awareness programme to ensure that every Nigerian across the length and breadth of the country benefitted from the lucrative investment opportunities.

Also speaking, Ukwunna Ifeoma Ukwunna, Head, Retail Business at CSL, said that response to the awareness programme had been very encouraging.

According to Ukwunna, investors need information because they care about safe investment and for the opportunity to engage capital market operators on issuance of these FGN securities.

“Also, the feedback from investors has been encouraging.

“Capital raised from FGN savings bond has also grown significantly due to the impact of these awareness programmes,” she said.

The News Agency of Nigeria (NAN) reports that the FGN Securities Issuance Awareness Programme was innaugurated in Lagos in March, 2022.

It has also been held in Enugu, Ibadan, Kano, Yola, Umuahia, Gombe, Osogbo, Port Harcourt, Benin, Uyo, Asaba, Maiduguri, Abeokuta, and Makurdi.

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Securities will benefit all categories of  Nigerian investors – DMO

Kaduna, Nov. 23, 2024: The Debt Management Office (DMO), says the Federal Government securities are designed to meet investment needs of all categories of investors.

Patience Oniha, the Director-General of the DMO, said this at the FGN Securities Issuance Awareness Programme in Kaduna on Thursday.

Oniha, who was represented by Mrs Jumai Saidu-Ahmed, Team Leader, Domestic Debt Unit, said that FGN securities were default risk-free, and backed by the full faith and credit of the Federal Government.

She said that the awareness programme was a collaborative effort of the DMO and CSL Stockbrokers Limited, the Federal Government’s stockbroking firm.

“The programme is designed to create more awareness about the immense benefits of investing in FGN securities, ” she said.

She listed the existing FGN securities as FGN Bond, FGN Savings Bond, the Sukuk Bond, the Green Bond and Treasury Bills.

She, particularly, urged retail investors to take advantage of the FGN savings bond, which had a minimum subscription of N5,000.

“It is easily accessible to retail investors and attracts a guaranteed quaterly coupon payment, ” she said.

She said that the DMO was a Federal Government agency saddled with the responsibility of managing the country’s public debt portfolio.

“In discharging that responsibility, the DMO also has the responsibility of issuing FGN securities which offer good investments for Nigerians.

“By investing in these securities, citizens are also contributing to nation-building,” she said.

According to Mr Abiodun Fagbulu, the Chief Executive Officer, CSL Stockbrokers Limited, FGN securities help to finance deficits in the federal budget.

Fagbulu, who was represented by Mr Richard Akinmoladun, Head, Property Trading, CSL, said that FGN securities also helped in developing the domestic financial market.

“They are listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited, and can be traded at any time.

“They also promote financial inclusion, and attract foreign investment into the domestic financial markets,” he said.

According to him, FGN securities are viable collateral that can be used to access loans from banks.

“They also help in the diversification of investment port to reduce risk and achieve growth in value,” he said.

The awareness programme was inaugurated in Lagos in March, 2022.

It had also been held in Enugu, Ibadan, Kano, Yola, Umuahia, Gombe, Osogbo, Port Harcourt, Benin, Uyo, Asaba, Maiduguri, Abeokuta, and Makurdi.

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DMO raises N652bn in sixth, N150bn Sovereign Sukuk

Marrakech (Morocco), Oct. 13, 2023: The Debt Management Office (DMO) says the N150 billion Sovereign Sukuk whose offer for subscription closed recently received a total subscription of N652.827 billion.

The Director-General of the DMO, Patience Oniha, made this known on Thursday in Marrakech.

According to Oniha, subscription level, which is 435 per cent of the N150 billion original amount, shows that the level of awareness of the product has increased.

She said it was also an indication that investors were willing to support the financing of infrastructure.

“In response to this strong demand for the Sukuk, the DMO has allocated N350 billion to the diverse investors who subscribed to the Sovereign

“The N350 billion will be used to finance the construction and rehabilitation of roads and bridges across the six geopolitical zones and the Federal Capital Territory.

“The DMO remains committed to meeting the needs of investors while also supporting the development of the domestic capital market,” she said. .

DMO on Oct. 3, announced an offer for subscription of its 6th, 10-year tenor Sovereign Sukuk for N150 billion, at a rental rate of 15.75 per cent.

Oniha had said that the Sovereign Sukuk was in initiated in 2017 to aid the rehabilitation and construction of critical national infrastructure.

She said that the Federal Government had raised and deployed N752.557 billion through the Sukuk, for development of critical infrastructure since 2017.

According to jer, Sukuk helps in infrastructure development and also achieves associated multiplier benefits.

“The DMO, through the issuance of Sukuk, has raised and deployed N752.557 billion to the rehabilitation and construction of N4, 000 kilometres of roads and bridges across the six geopolitical zones and the Federal Capital Territory (FCT).

“Apart from infrastructure development, Sukuk encourages financial inclusion by offering ethical investors an opportunity to invest in government securities.

“It deepens the domestic financial market and also sets a benchmark corporates and subnationals,” she said.

She assured that the Sukuk was backed by the full faith and credit of the Federal Government.

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DMO offers N150bn Sukuk bond for subscription

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Abuja, Oct. 4, 2023: The Debt Management Office (DMO) on Tuesday offered for subscription, Ijarah Sukuk valued at N150 billion.

According to a statement by the DMO, the Sukuk is issued by Federal Government of Nigeria (FGN) Roads Sukuk Company PLC,  on behalf of the Federal Government.

It said that the Sukuk were offered at N1,000 per unit, subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.

“Rental payment is made half-yearly, and bullet repayment is done on the date of maturity.

“Proceeds will be used solely for the construction and rehabilitation of key road projects and bridges across the six geopolitical zones of the country,” the DMO said.

It added that the Ijarah Sukuk was backed by the full faith and credit of the Federal Government.

“It qualifies as securities in which trustees can invest under the Trustee Investment Act.

“Qualifies as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among other investors.

“To be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited, ” it said.

It added that the Ijarah Sukuk was classified as liquid asset by the Central Bank of Nigeria (CBN) and certified by the Financial Regulation Advisory Council of Experts of the CBN.

The News Agency of Nigeria (NAN) reports that the Sukuk is a Sharia-compliant instrument that represents the interests of the owner in an asset or pool of assets.

It ensures that every financial activity is backed by real economic activity, is usually linked to specific infrastructure projects.

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DMO’s August bonds auction records N312bn subscription

Abuja, Aug. 15, 2023: The Debt Management Office (DMO) says it received a total subscription of N312.56 billion in its August, Federal Government of Nigeria (FGN) bond auction.

The DMO made this known in a statement released through its official website on Tuesday.

DMO held the FGN bond auction on Monday, amidst monetary policy tightening and uncertainties.

Four instruments were offered to investors at the auction.

The instruments were 14.55 per cent April 2029 FGN bond; 14.70 per cent June 2033 FGN bond; 15.45 per cent June 2038 FGN bond and 15.70 per cent June 2053 FGN bond.

They were valued at N90 billion each, making a total offer of N360bn.

“In spite of current market conditions, the auction received a total subscription of ₦312.56 billion.

“Investors’ appetite for the 15.70 June 2053 (30-year bond) remained strong, with a bid-to-cover ratio of 2.71 times.

“The amount allotted to successful bidders for the four instruments was N227.76 billion.

“Allotments were made at 13.85 per cent for the 14.55 per cent April 2029 instrument and 15.00 per cent for the 14.70 per cent June 2033 instrument.

Also “15.20 per cent was for the 15.45 per cent June 2038 instrument, and 15.85 per cent for the 15.70 per cent June 2053 instrument, ” the DMO said.

The FGN bond, like the FGN savings bond and the sovereign sukuk, are FGN securities which constitute the local component of government borrowing.

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DMO lists N130bn Sukuk on NGX

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Abuja, Aug. 3, 2023: The Debt Management Office (DMO) says it is set to expand capital market offering, by listing its N130 billion Sovereign Sukuk on the Nigerian Exchange Ltd. (NGX) and the FMDQ Securities Exchange Ltd.

The DMO made this known in a statement obtained from its website on Thursday.

According to the statement, listing of the N130 billion Sovereign Sukuk on the NGX and FMDQ will expand the range of financial offering available to investors in the capital market.

“The opportunity to buy and sell the Sovereign Sukuk will provide liquidity to investors and promote price discovery,” it said.

It revealed that the total Sovereign Sukuk issued since the product was introduced in 2017 stood at N742.57 billion.

“The proceeds have facilitated the construction and rehabilitation of over 75 Nigerian roads and bridges,” the DMO said.

The News Agency of Nigeria (NAN) reports that the N130 billion Sovereign Sukuk opened for subscription in November 2022 with an initial offer of N100 billion.

It, however, garnered immense interest from investors with a subscription level of N163.25 billion, which represents over 165 per cent of the amount offered.

A total of N130 billion was, however, allocated by the DMO to accommodate diverse investment needs of various investors who subscribed to the product.

The NGX, formally known as the Nigerian Stock Exchange (NSE), and the FMDQ provide a wide range of services, including listing and tracing securities, licensing, market data solutions among others.

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