DMO Clarifies N611.71bn Debt Service Figure
By Patience Ikpeme
The Debt Management Office (DMO) has issued a clarification to correct reports circulating in the media regarding the debt service amount for Nigeria’s first-ever domestic U.S. dollar-denominated bond.
The DMO stated that the figure of N611.71 billion, which was incorrectly linked to the bond, is the total debt service for all outstanding FGN Bonds in March 2025.
In its statement, the DMO noted that the reports were “wrong in its entirety.” The office clarified that the correct figure for debt service on the FGN U.S. dollar-denominated bond in Q1 2025 was N67.988 billion.
The DMO explained that its public reports show the N611.71 billion figure on one line for all FGN Bonds and the N67.988 billion figure on a separate line specifically for the domestic FGN U.S. dollar bond.
The DMO also addressed claims about principal repayment, stating that “no amount was repaid as principal repayment on the US Dollar Bond.” The bond is designed to be repaid in full at its maturity in 2029.
The FGN U.S. dollar-denominated bond is a foreign currency bond issued by the Federal Government to local investors, including Nigerian residents, the diaspora, and local institutional investors. The bond’s primary goal is to raise capital in U.S. dollars from investors within Nigeria to support the local economy and address infrastructure gaps.
The inaugural bond was a significant milestone, raising over $900 million in September 2024. It received strong demand, with an over 180% subscription rate.
The bond, which has a five-year tenor and a 9.75% yield, is listed on the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange for trading purposes. The funds raised are intended for deployment to critical sectors of the economy and are backed by the full faith and credit of the Federal Government.
