Domestic market supports FG with N4.5 trillion for 2024 budget deficit

The Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, announced that N4.5 trillion has been raised from the domestic securities market out of the N6 trillion needed to finance the federal government’s 2024 budget deficit. She highlighted the significant role of the domestic securities market as the primary source of government borrowing.

During an interactive session with Primary Dealers Market Makers (PDMMs) in Lagos, Oniha also revealed that N4.905 trillion has been raised out of the N7.3 trillion approved by the National Assembly for the securitisation of Ways & Means.

“With your support, we have successfully raised N4.5 trillion for the 2024 budget deficit. For the securitisation of Ways & Means, we have raised N4.095 trillion so far. We still have a balance to meet, and we will see how the rest of the year unfolds,” Oniha explained.

She emphasized the resilience and sophistication of Nigeria’s domestic securities market, noting that it has been a reliable source of funding, especially during challenging times like the COVID-19 pandemic when international capital markets were inaccessible.

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“Last year, we raised N7 trillion from the domestic market, underscoring the market’s capacity and robustness. This is not the case for many other African countries,” Oniha added.

Mrs. Nadia Zakari, President of the Financial Market Dealers Association (FMDA), praised the DMO for organizing the interactive session, stressing the importance of continuous engagement with stakeholders in the evolving Nigerian business environment.

“Consistent engagement with stakeholders is crucial for both market operators and the federal government as they make strategic decisions for the remainder of the year,” Zakari noted.

In other news, the naira continued its upward trend, gaining value in both the official and parallel markets. At the official Nigerian Autonomous Foreign Exchange Market (NAFEX) window, the naira appreciated by N28.34, closing at N1,468.99/$1 compared to N1,497.33/$1 on Friday. In the parallel market, the naira gained N10, closing at N1,440/$1 from N1,450/$1 over the weekend.

Daily turnover saw a significant increase of 93.36 percent, with transactions rising to $161.41 million from $83.50 million on Friday. The highest spot rate recorded yesterday was N1,550, while the lowest was N1,400.