LAGOS , Nigeria (VOICE OF NAIJA) The Federal Government is aiming to raise N450 billion from investors by offering bonds, a move aimed at boosting the economy, ehancing fiscal discipline, debt management and strengthening the local financial market.
This initiative, spearheaded by Finance Minister Wale Edun, comes amidst growing concerns about Nigeria’s fiscal health and its ability to bridge budget shortfalls.
Addressing concerns and shedding light on the government’s debt issuance strategy, Minister Edun underscored the paramount importance of managing debt prudently while harnessing the potential of the domestic market to bolster economic stability.
Reiterating Tinubu’s administration commitment to a proactive approach, he outlined a multifaceted plan aimed at not only bridging budget shortfalls but also laying the groundwork for sustainable growth and development.
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At the core of the government’s strategy lies a primary market auction (PMA) orchestrated by the Debt Management Office (DMO), set to offer three distinct bond issuances to investors.
These include a new three-year bond and the reopening of existing seven-year and 10-year bonds, each meticulously designed to meet diverse investor preferences and market demands.
Amidst apprehensions surrounding Nigeria’s economic trajectory, Minister Edun exuded confidence in the nation’s resilience, citing robust investor interest as evidenced by the oversubscription of Nigerian Treasury Bills (NTBs) in recent auctions conducted by the Central Bank of Nigeria.
This resounding affirmation of investor confidence underscores Nigeria’s economic potential and the government’s steadfast commitment to fiscal prudence.
Elaborating on the government’s reform agenda, Edun articulated a comprehensive roadmap aimed at fortifying fiscal discipline, enhancing revenue generation, and optimizing expenditure allocation.
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With a keen focus on efficiency and effectiveness, the plan encompasses a range of initiatives, from streamlining recurrent expenditure and prioritizing essential spending to expanding the tax base to encompass informal and digital transactions.
Furthermore, the minister emphasized the pivotal role of incentivizing investment and stimulating economic growth through targeted measures such as tax breaks and incentives for priority sectors.
By fostering an enabling environment for both domestic and foreign investors, the government aims to catalyze job creation, infrastructure development, and overall economic expansion.
In addition to fiscal reforms, Minister Edun highlighted the imperative of collaborative governance, particularly in the realm of tax administration.
By fostering synergy with state and local governments, the federal administration seeks to streamline tax collection, improve compliance, and mitigate tax evasion, thereby optimizing revenue generation and promoting financial stability across all tiers of government.
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In all Minister Wale Edun’s visionary leadership, coupled with the Federal Government’s proactive stance, signals a new era of fiscal prudence and economic resilience in Nigeria.
As the nation navigates through the complexities of global economic dynamics, the government remains steadfast in its commitment to charting a course towards sustainable growth, prosperity, and inclusive development for all Nigerians.