The Minister of Finance, Kemi Adeosun, announced the appointment in Abuja on Friday
Browsing: Dr. Abraham Nwankwo
The sources dismissed rumours making the rounds that Dr. Nwankwo is reluctant to leave at the expiration of his tenure and that his purported ambition to stay on is generating tension or uneasiness at DMO
The savings bond is government’s way of affirming its faith in the capital market, and at the same time widening access to the market, while deepening the savings culture of all Nigerians
Dr. Abraham Nwankwo, the DMO Director-General, said in Lagos that the listing became imperative to guarantee liquidity of the bond
The purpose of this bond, aside being a source of diversified funding for government, is to also help deepen the national savings culture. Anyone who earns income is able to participate in this unique investment opportunity
In a country where pension payment has become a thorny issue, and hundreds die waiting for either gratuity or pension, the bonds offer securities for old age. For those still active, the bonds will be good products for savings towards important personal projects such as marriage, school fees, house rent and sundry expenses that salaries or monthly incomes cannot cover
Dr. Abraham Nwankwo, the DMO Director-General, made this known during the bond listing at the NSE in Lagos
Nwankwo explained to the Committee that the marginal rise in the domestic debt profile was the offshoot of net issuances of Federal Government bonds and treasury bills
The fact is that there is so much idle capacity in the economy which, if properly deployed, can generate enough inflows to take care of the challenge of repaying a Eurobond debt which, in percentage terms, does not pose a threat to an economy of the size of Nigeria’s
The compact book, aptly titled: “From Economic Downturn to Turnaround & Prosperity; Strategies for Economies hit by Recession but which have Idle Capacity,” is brutally frank about what must be done, in a systematic manner, to move Nigeria and countries going through similar crisis from the sorry place where they are to the place of prosperity where they would be if they apply the prescriptions meticulously
Speaking on Friday at a Breakfast Meeting with Finance Correspondents Association of Nigeria in Lagos, Dr. Nwankwo said governments’ efforts at revalitalising the agriculture sector, solid minerals, manufacturing and taxation will have massive impact on the economy in the next three to five years
It would be recalled that the DMO resuscitated the Domestic Bond Market in 2003 when it first issued FGN Bonds. This landmark achievement was intended to restructure the Government’s domestic borrowing which was predominantly short term and to develop the domestic bond market which had been moribund for about 20 years
He said some of the borrowings are for like 40 years to 50 years, which can be used for projects that will last for 100 years
Nwankwo said there had been efforts since 2012 to ensure that the Federal Government bonds were democratised for retail investors to participate
“We made the proposal to the Vice President, who liked it and took it to the President, who approved it and then presented to the National Economic Council, which also approved it. Twenty-three states showed interest and we have restructured their debts into a 20-year Federal Government of Nigeria bonds,” Dr. Nwankwo said
Nwankwo was speaking at a one-day workshop for the South-South, South-East and South-West geopolitical zones on Effective Sub-National Debt Management for Top Policy Makers in the states
“It has to do with what we have done to transform the market.”
Nwankwo said that the DMO had transformed the market to raise long-term funds of up to 20 years from the market
The Federal Executive Council, at its meeting on Wednesday in Abuja, approved the strategy document to help address the structure of the country debts