The Debt Management Office disagrees with recent news reports that implied the selection of transaction advisors for a possible Eurobond issuance.
The DMO expressed its stance in a statement provided to PUNCH Online on Friday.
It was previously stated that the Federal Government has engaged the services of top global investment banks such as Citibank NA, JPMorgan Chase & Co, and Goldman Sachs Group Inc., to lead its upcoming Eurobond issuance.
The previous report also mentioned that the FG assigned Standard Chartered Bank and the Lagos-based financial advisory firm Chapel Hill Denham to provide guidance on this project.
According to the DMO, the selection of Transaction Advisers adheres to strict guidelines outlined in the Public Procurement Act, 2007 and is dependent on approval from the Federal Executive Council.
Furthermore, the issuance of Nigeria's Eurobonds in the International Capital Market is subject to additional scrutiny.
This entails approval from the FEC and obtaining the Resolution of the National Assembly, in line with the provisions of the Fiscal Responsibilities Act, 2007 and the Debt Management Office (Establishment, Etc.) Act, 2003.
The statement clarified that, at present, the DMO has not received the required approvals from the FEC or the resolution of the NASS for any Eurobond issuance, and thus, any assertions to the contrary are baseless.
The DMO advises the public to depend on official statements directly from their office for precise updates on Nigeria’s debt management activities. Upholding transparency and compliance with legal procedures remains crucial in ensuring responsible financial management for the nation.
The statement explained, “The Debt Management Office intends to rectify recent news reports that indicated the selection of Transaction Advisers for a potential Eurobond issuance as incorrect.
“The appointment of Transaction Advisers by the DMO is conducted in compliance with the stipulations of the Public Procurement Act, 2007 and is contingent on the endorsement of the Federal Executive Council.
“Similarly, the issuance of Nigeria's Eurobonds in the International Capital Market necessitates approval from the FEC and receipt of the Resolution of the National Assembly as outlined in the Fiscal Responsibilities Act, 2007 and Debt Management Office (Establishment, Etc.) Act, 2003. Currently, the DMO has not obtained the necessary approvals from the FEC and the Resolution of the NASS for any Eurobond Issuance.
“We encourage the public to rely on official statements from the DMO for accurate updates on Nigeria’s debt management activities.”
