The Debt Management Office (DMO) has officially confirmed that the capital raising request submitted by the Presidency has already received approval and has been forwarded to the Senate for legislative consideration.
In a statement issued on Wednesday evening, the DMO explained that the approval was granted in accordance with the provisions of Sections 21 and 27 of the Debt Management Office (Establishment) Act, 2003.
These legal provisions mandate that any borrowing on behalf of the Federal Government must receive legislative endorsement before proceeding.
According to the DMO, the proceeds of the capital raise will be channelled into several key capital projects.
These projects will focus on vital sectors such as power, transportation, agriculture, and water resources, among others.
The goal, it stated, is to stimulate economic development and support national recovery efforts.
“The funds will be used for critical infrastructure projects across the country to enhance productivity, improve the standard of living, and promote inclusive growth,” the agency stated.
This move forms part of the Federal Government’s broader strategy to drive economic recovery through increased public investment in infrastructure.
With the economic strain caused by the COVID-19 pandemic and global financial uncertainty, the government has leaned heavily on responsible borrowing to close funding gaps for development projects.
The DMO emphasized that all borrowings are guided by the Medium-Term Debt Management Strategy (MTDS), which ensures that public debt remains sustainable, transparent, and used strictly for capital investments rather than recurrent expenses.
While Nigeria’s debt profile has sparked debate in policy circles, the government continues to argue that borrowing for developmental projects is a necessary tool for long-term economic stability and growth.
The DMO reaffirmed its commitment to ensuring that borrowed funds are efficiently managed and transparently utilised for the benefit of all Nigerians.
