FG bonds in NSE worth N6trn – DMO

Debt Management Office (DMO) and the Nigerian Stock Exchange (NSE) have agreed for greater collaboration to ensure bond market development and economy growth.
The Director General of DMO, Dr. Abraham Nwankwo disclosed this during the agency’s visit to the exchange yesterday in Lagos.

He said the Nigerian economy is proud of NSE, giving into account the volatility in the global and local stock market, since 2012, saying “It takes strength of the stock exchange for us to be on course.”
He stated that in 2012, DMO  listed an outstanding of about N72 billion worth of FGN bond, today that has multiplied over eighth times to about N5.8 trillion listed as an outstanding FBN bond on the NSE.

He assured that DMO will do all within its mandate and in addition outside its mandate to serve as bridge in ensuring Nigerian stock exchange has access and deliver on its various initiatives for the growth of Nigeria economy.
He noted that in the next couples of year,  giving the focus of the present administration of President Muhammadu Buhari, the Nigeria economy is bound to demonstrate its resilience as it look upward and establish itself on the path of sustainable growth.

Nwankwo emphasized that DMO want s to collaborate with other institutions, especially the private sector to enable it strategise and produce maximum results for the Nigeria economy.
On the issue of the impact of restructuring of state bank loan, he said this has led to the drastical reduction to the monthly debt service on those liabilities as this makes the state to be able to pay salaries.

“DMO is to ensure short term stabilisation for the federal government but a long term stabilisation of the fiscal condition for the establishment of a self-sustaining economy growth,” he said
He called on Nigerians especially private sector to make their own contribution so that the objective of government to quickly diversify the economy can be achieved.

According to Nwankwo, currently, the Nigerian bond market remained resilient and adequately funded in spite of the fiscal crisis occasioned by the drop in oil prices, adding that Nigerian bond options had continuously been over-subscribed while prices and yields were likely to be more favourable.

Credit: Daily Trust