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DMO Raises Fund Through Fresh Auction

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The Debt Management Office (DMO) has raised N106 billion through Auction of Federal Government bonds.

The funds raised by the DMO will be used to implement the 2017 budget which is N77.44 trillion, the debt office says.

The bonds were offered in tenors of 5, 10, and 20 years. The investors preferred the long dated bonds of 10 and 20 years, because they are given advanced time to pay back the bonds.

Analysts are of the opinion that the budget is a catalyst to stimulate economic recovery, building infrastructure, and economic growth.

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From the budget allocations, the Federal Ministry of Power, Works and Housing had the highest share of N586.54 billion, followed by Transport, with a share of N256.52 billion, Education with N455.41 billion and then Health with N308.46 billion.

The allocation to Federal Ministry of Power, Works and housing and Transport shows the interest in infrastructure development and the proceeds from DMO bonds will be used to achieve these objectives.

Tolalupe is a secondary school intern with The Whistler