The Debt Management Office (DMO) has dismissed reports claiming that the Federal Government spent N611.71 billion in March 2025 servicing its first-ever U.S. dollar-denominated bond issued in the domestic capital market.

In a statement, the DMO explained that the figure had been wrongly attributed, stressing that N611.71 billion represented the debt service for all outstanding Federal Government of Nigeria (FGN) bonds, excluding the U.S. dollar bond.

“The statement is wrong in its entirety,” the DMO said. “The figure published by the DMO on its website for Q1 2025 as debt service on the U.S. dollar-denominated bond was N67.988 billion and not N611.71 billion.”

The agency clarified further that its publications show the distinction between the two figures. “For the avoidance of doubt, the Q1 2025 Domestic Debt Service figure published on the DMO’s website for Federal Government of Nigeria Bonds in the month of March 2025 was N611.71 billion. In the same report and on a separate line, the debt service for Domestic FGN U.S. Dollar Bond for March 2025 was N67.988 billion,” it stated.

The ’MO also addressed claims of principal repayment on the bond, noting that no such payment has been made. “Contrary to some claims, no amount was repaid as principal repayment on the U.S. dollar bond. The bond is to be repaid in full at maturity in 2029,” it said.

Nigeria’s inaugural domestic U.S. dollar bond, issued in September 2024, marked a milestone in the country’s financing strategy.

The bond raised over $900 million with an oversubscription rate of more than 180 percent.

It carries a 9.75 percent yield and a five-year tenor, with proceeds earmarked for critical infrastructure projects.

The bond, authorised under a Presidential Executive Order on the Foreign Currency Denominated Financial Instrument Local Issuance Programme, allows the Federal Government to raise capital in U.S. dollars from local sources, including Nigerian residents, institutional investors and the diaspora community.

Although denominated in dollars, the instrument is issued and traded within Nigeria.

It is listed on the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange, providing investors a platform for trading.

The DMO stressed that the bonds are fully backed by the Federal Government of Nigeria. By targeting local investors with foreign currency-denominated instruments, the programme is intended to strengthen domestic market participation while addressing the country’s infrastructure financing needs. (The Nation)

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