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A map of Nigeria -
DMO surpasses funding target by 33%
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Bond auctions record 257% oversubscription
By Babajide Komolafe
Leveraging on excess liquidity that persisted in the banking system and the near zero yields on treasury bills (TBs), the Federal Government, through the Debt Management Office (DMO), raised N2.1 trillion from investors in its monthly bond issuance programme in 2020.
This represents 33 percent, year-on-year, (y/y) increase when compared with the N1.58 trillion raised by the DMO in 2019.
The N2.1 trillion raised in 2020 also represents 31 percent more than the N1.6 trillion funding target for the DMO under the Revised 2020 Budget.
Meanwhile, the monthly bond auctions conducted by the DMO in 2020 recorded 275 percent oversubscription, reflecting scramble for the high yielding FGN bonds by investors.
Vanguard Public Finance reports on monthly bond auction results show that the DMO offered N1.825 trillion worth of bonds during the year,…
Source: Vanguard Newspaper
