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DMO harps on increased revenue drive to reduce borrowings

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4 years ago

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The Debt Management Office (DMO) has stressed the need for the Federal Government to increase revenue drive to reduce the country’s debt profile and reduce fresh borrowing.

The Director General, DMO, Ms Patience Oniha, said this during a virtual interactive session tagged: “Nigeria moving beyond COVID-19; Opportunities for investors” organised by Coronation Merchant Bank (MB) on Tuesday in Lagos.

Oniha said that government needs to prioritise and invest heavily on sectors capable of generating increased revenue such as agriculture, mining and ICT to grow the economy.

According to her, sectors with robust revenue drivers are better positioned to respond to the risks associated with any transformation and to the urgency created by disruptive events.

Oniha said that the country’s debt profile had been on the increase because of the impact of revenue crash and the crises trailing the coronavirus pandemic on the economy.

She argued that the rate of borrowing had started declining until COVID-19 crisis forced Nigeria, like many other nations, to increase its borrowing in order to stimulate the economy and create more jobs for the people.

“To increase the level of revenue, and the DMO is very much in support of that;  if we grow revenues, then debt service will be lower and debt will be sustainable, but it also means that we may not need to borrow that much.

“The second point which we have put forward to the government is that it cannot finance the projects like it used to.

“Our position for debt sustainability is to grow revenues and begin to work with the private sector to finance capital projects, and that way, the only thing that might increase is the off balance sheet liabilities in terms of guarantees and not on balance sheet borrowing,” Oniha said.

On whether the country will return to the Eurobond market after successful issuances, Oniha said, “We do have 6.18 billion dollars to raise for the 2021 budget but our transaction advisers told us to do 4 billion dollars.

“We were looking to go back at

some point but within one week of pricing, the market headed south and is still in that situation right now.

“Omicron came, Evergrand had some challenges in the market and so it is not exactly good for us to go back, and I can say for this year, we are not approaching the market, but if we do not get the money from the ICM, we can get it from another source.”

“We borrowed more because of the COVID-19 pandemic to provide palliatives, build a vibrant health sector and embark on activities that can create jobs because a lot of people lost their jobs due to the pandemic,” she said.

Oniha admitted that the nation’s growing insecurity poses a threat to investment inflow.

Also speaking, the Managing Director and Chief Executive of FMDQ, Mr Bola Onadele, said government needs to deploy large proportion of its borrowing into the productive sector to stimulate growth.

Onadele said: “Debt is sustainable when a country has the ability and size to meet current and future payment obligation without external assistance and default.

“Debt that is not sustainable has a negative consequence on investment.

“It is important that any country trying to borrow should have a pay back structure because investors in the global market look at capabilities to pay back to see if the country is within the purview of debt to service ratio,” he said.

The Managing Director, Commercio partners Ltd., Mr Steve Osho, said investors consider macro economics and ratings of countries and subnational in determining whether to invest into the country.

Osho said: “In Nigeria, Debt Service to GDP is 90 per cent. What it means is that as you generate N100, N90 is used to service debt and this will definitely affect credit rating. This is a source of concern.”

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Business & Economy

Tinubu Welcomes Nigeria’s Removal from FATF Grey List, Pledges Continued Financial Reforms

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1 month ago

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October 24, 2025

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President Bola Tinubu
President Bola Ahmed Tinubu
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President Bola Ahmed Tinubu has welcomed the removal of Nigeria from the Financial Action Task Force (FATF) grey list, describing it as a major milestone in the nation’s economic reform and global credibility drive.

The FATF, the world’s foremost body for combating money laundering, terrorist financing, and proliferation financing, announced Nigeria’s delisting on Friday at its plenary session in Paris, France.

The decision formally removes Nigeria from the list of countries under increased monitoring, following the nation’s successful completion of its FATF Action Plan after over two years of sustained reforms and inter-agency coordination.

In a statement issued by his Special Adviser on Information and Strategy, Bayo Onanuga, President Tinubu said the development reflects Nigeria’s progress in strengthening its Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) framework.

“Rather than treat our placement on the grey list in 2023 as a setback, we saw it as a call to action,” the President said. “This delisting is a strategic victory for our economy and a renewed vote of confidence in Nigeria’s financial governance.”

The President credited the achievement to far-reaching legal, institutional, and operational reforms implemented under his administration through the Nigerian Financial Intelligence Unit (NFIU), in collaboration with the Attorney-General of the Federation, the Minister of Finance and Coordinating Minister of the Economy, and other key ministries.

Tinubu commended the Director/CEO of the NFIU, Ms. Hafsat Abubakar Bakari, and her team for their diligence and professionalism, as well as the contributions of several ministries, agencies, and private sector representatives who participated in the National Task Force on AML/CFT.

He also acknowledged the support of international partners including France, Germany, the United Kingdom, the United States, the United Nations, and the European Commission, for their technical assistance throughout Nigeria’s reform process.

President Tinubu assured that his administration will sustain and deepen the reforms that led to the country’s delisting.

“This is not just a technical accomplishment,” he said. “It marks the beginning of a new chapter in our financial reform agenda as we continue building a system Nigerians and the world can trust.”

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Lagos Tops 2024 State Revenue Ranking with ₦1.26 Trillion — NBS Report

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2 months ago

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October 7, 2025

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Lagos State has retained its position as Nigeria’s highest internally generated revenue (IGR) state in 2024, according to a new report released by the National Bureau of Statistics (NBS).

The report, published on Monday via the NBS X handle, revealed that the 36 states and the Federal Capital Territory (FCT) collectively generated ₦3.6 trillion in 2024, marking a 49.7 per cent increase from ₦2.43 trillion recorded in 2023.

Lagos led the chart with ₦1.26 trillion, followed by Rivers with ₦317.3 billion, and the FCT with ₦282.36 billion. Ogun and Enugu States completed the top five with ₦194.93 billion and ₦180.5 billion, respectively.

The bottom five states on the list were Adamawa (₦20.29 billion), Taraba (₦17.46 billion), Kebbi (₦16.97 billion), Ebonyi (₦13.18 billion), and Yobe (₦11.08 billion).

Other states that made the top 10 include Delta (₦157.79 billion), Edo (₦91.15 billion), Akwa Ibom (₦75.77 billion), Kano (₦74.77 billion), and Kaduna (₦71.57 billion).

The NBS noted that the sharp increase in overall IGR reflects growing fiscal efforts by states to boost their internal revenue base amid declining federal allocations.

 

 

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FG Launches Free Financial Education Programme for 100,000 Youths 

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4 months ago

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August 21, 2025

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The Federal Ministry of Youth Development, in partnership with Investonaire Academy, has commenced registration for a nationwide financial education programme designed to train 100,000 Nigerian youths annually in financial literacy, entrepreneurship, global trade, and investment.

In a statement signed by Omolara Esan, Director of Information & Public Relations, the Ministry said the initiative reflects its commitment to equipping young Nigerians with the skills to navigate today’s complex financial landscape, enhance employability, and foster sustainable wealth creation.

The programme will provide participants with exposure to global asset classes, including commodities, gold, equities, and foreign exchange, as well as training in risk management, portfolio development, and wealth-building strategies.

Successful candidates will receive industry-recognised certificates to support career advancement and entrepreneurial opportunities. Training will be delivered via an interactive Learning Management System (LMS), incorporating gamified learning, simulations, quizzes, and real-life trading scenarios. Physical sessions will begin in Abuja before expanding nationwide.

The programme is open to students, NYSC members, entrepreneurs, job seekers, and young professionals across Nigeria’s 36 states and the FCT.

Registration is free and currently ongoing via www.investonaire.org.

 

 

 

 

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