Understanding Nigeria's debt strategy

Nigeria's Debt Management Office (DMO) has been at the forefront of the country's drive for infrastructural development, with a particular focus on diversifying Nigeria's debt portfolio. In a recent interview with CNBC Africa, Patience Oniha, the Director General of DMO, shed light on the impact of this diversification on the debt market and the introduction of new financial instruments to bolster local borrowing and raise funds. Oniha highlighted the success of recent products like the Sukuk bonds and Green bonds in mobilizing funds for infrastructure projects. She also addressed concerns about the strategy to reduce domestic debt in favor of foreign debt, explaining that the aim is to achieve a 60-40 mix to ensure capital raising from diversified sources and reduce dependence on the domestic market. This strategy has already shown positive results, with interest rates dropping and reserve levels increasing. Looking ahead to the rest of the year, DMO plans to continue with successful strategies and explore new initiatives to support private sector-led development through partnerships with the government.