The Debt Management Office, DMO, has clarified that the appointment of Transaction Advisers for the issuance of Eurobond is contingent upon the approval of the Federal Executive Council, FEC.
The Director-General of the DMO, Patience Oniha in an interview with the News Agency of Nigeria, addressed concerns raised in media reports regarding a company linked to the Minister of Finance, Mr. Wale Edun, being appointed as one of the Transaction Advisers for a potential one billion dollars Eurobond.
She emphasized that approval from the National Assembly was also necessary for such appointments even as she explained that the selection of Transaction Advisers by the DMO follows the provisions of the Public Procurement Act, 2007, and is contingent upon the approval of the FEC.
Oniha clarified that recent news reports suggesting the appointment of Transaction Advisers for a potential Eurobond issuance were inaccurate.
She emphasized that the DMO had not yet received approval from the FEC or the National Assembly for the issuance of Eurobonds. According to Oniha, the issuance of Eurobonds by the Federal Government of Nigeria is subject to the approval of the FEC and the receipt of a resolution from the NASS.
These processes align with the provisions of the Fiscal Responsibility Act, 2007, and the Debt Management Office (Establishment, Etc.) Act, 2003.
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As of now, the DMO has not obtained the necessary approvals for any Eurobond issuance. Oniha urged the public to rely on official statements from the DMO for accurate updates on Nigeria’s debt management activities.
NAN reports that Chapel Hill Denham, the company in question, was among the five issuing houses appointed in 2021 during the tenure of former President Muhammadu Buhari’s government as Transaction Advisers for Nigeria’s Eurobonds.
The other appointed companies included Citigroup Inc., JPMorgan Chase & Co., Goldman Sachs Group Inc., and Standard Chartered Bank. With this set of Transaction Advisers, Nigeria successfully issued a total of 5.25 billion dollars’ worth of Eurobonds in 2021.
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