DMO Offers N142.43bn Treasury Bills

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DMO

From Benjamin A Ameh, Lagos

The Africa’s biggest economy and the continent’s top oil producer’s currency has lost more than 20 percent in the past three months as oil prices nose-dived and concern grew among investors particularly about political stability even before or after the six-week postponement of the February 14 elections.

Debt Management Office scheduled to Functions with the Vice-President of the Federal Republic of Nigeria who shall be the Chairman; the Minister of Finance who shall be the Vice-Chairman; the Attorney-General of the Federation; the Chief Economic Adviser to the President; the Governor of the Central Bank of Nigeria; the Accountant-General of the Federation; and the Director-General of the Office who shall be the Secretary to the Board.

Debt Management Office DMO functions as follows: the office shall maintain a reliable database of all loans taken or guaranteed by the Federal or State Governments or any of their agencies; prepare and submit to Federal Government a forecast of loan service obligations for each financial year; prepare and implement a plan for the efficient management of Nigerian’s external and domestic debts obligations at sustainable levels compatible with desired economic activities for growth and development; and participate in negotiations aimed at realizing those objectives; verify and service external debts guaranteed or directly taken by the Federal Government; on agency basis, service external debts taken by State Governments and any of their agencies: where such debts are guaranteed by the Federal Government; set guidelines for managing Federal Government financial risks and currency exposure with respect to all loans, advise the Federal Government on the re-structuring and re-financing of all debt obligations; advise the Minister on the terms and conditions on which movies, whether in the currency of Nigeria or in any other currency, are to be borrowed;

DMO should submit the documents to the Federal government, for consideration in the annual budget, a forecast of borrowing capacity in local and foreign currencies; prepare a schedule of any other Federal Government obligations such as trade debts and other contingent liabilities, both explicit and implicit, and provide advice on policies and procedures for their management; establish and maintain relationships with international and local financial institutions, creditors and institutional investors in Government debts; collect, collate, disseminate. information, data and forecasts on debt management with the approval of the Board carry out such other function, which may be delegated to it by the Minister or by an Act of the National Assembly.

DMO perform such other functions which in the opinion of the Office are required for the effective implementation of its functions under this Act as results the DMO on Thursday disclosed that the yield on Nigeria’s one-year treasury bills rose at an auction where a total N142.43 billion was raised in a bid to attract investors to the longer maturity.

Furthermore, the yield rose to 15.25 per cent at the auction held on Wednesday from 14.3 per cent two weeks ago on the one-year note, fetching N80 billion, Reuters stated.

While the yield on the 3-month paper eased to 10.75 percent from 10.98 percent at the last auction on February 3, fetching N32.43 billion.

However, the yield on the 6-month paper fell to 13.70 per cent from 13.9 per cent previously. The paper fetched N30 billion leaving the total demand at the auction fell to N254.33 billion, from N294.54 billion from the last auction.


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