THE Debt Management Office (DMO) is set to raise up to N1 trillion from Nigerians and US$500 million at the international market through bonds this year. This was revealed by Dr. Abraham Nwankwo, director general of the DMO in Lagos last Friday. Nwankwo said the fund raised would be used to offset the deficit in the 2010 budget of the country.
According to him, the 2010 appropriation bill deficit of N867.48 billion which would be funded by the DMO would be raised through bond issuance during the year. Nwankwo added that the DMO had wanted to raise $500 million through the Nigerian Sovereign Bond at the international capital market last year but was unable to do so due to the  global financial downturn experienced last year. He said the DMO is however set to issue the $500 million 10-year Nigerian Sovereign Bond at the international market this year.
Nwankwo who noted that the budget deficit of the country had been funded by the DMO since 2005, said N524.11 billion was raised through bonds to fund the 2009 deficit. The money raised last year was used to fund the Commercial Agricultural Credit Scheme, the Nigerian Cotton Textile and Garment Scheme, the Revitalisation of the Railway Transport: Purchase of Locomotives amongst others.
This he said was part of the efforts of the DMO to grow the bond market as well as the real sector of the Nigerian economy. He said that the DMO would also during the year help sustain activities for helping the states fully implement the template for the establishment of their Debt Management Departments.