Nigeria: Bonds, Sukuk enhance Nigeria’s capital market, says DMO

Nigeria’s Debt Management Office (DMO) has said that the introduction of long-term government bonds, Sukuk and Green Bonds has helped to open Nigeria’s domestic capital market to more borrowers, including private companies and state governments.

The DMO made this known while accepting an award at the 2025 Made-of-Africa Awards organised by the Nigerian Exchange Group (NGX Group), where it received the “Special Recognition for Capital Market Excellence (Fixed Income)” award.

According to the DMO, these funding instruments have made it easier for different sectors of the economy to raise long-term funds locally, rather than relying heavily on short-term borrowing or foreign loans.

The Office explained that its consistent issuance of Federal Government of Nigeria securities, along with the use of global best practices, has helped to build trust and confidence in the country’s debt market.

“Also, through the issuance of Federal Government of Nigeria securities and the adoption of best practices, the DMO has attracted diverse investors, including foreign investors to Nigeria,” the DMO said.

It noted that the growth of Nigeria’s fixed-income market has provided investors with more options while supporting government efforts to finance infrastructure and development projects in a sustainable way.

The DMO added that it would continue to work with key players in the financial market to deepen the fixed-income space and make Nigerian debt instruments more attractive to both local and international investors.

The Office said it remains committed to rolling out new initiatives and strengthening collaboration with stakeholders to move Nigeria’s fixed-income securities market to a higher level.

This latest award marks the third year in a row that the Debt Management Office has received recognition for excellence in the capital market, having won similar honours in 2023 and 2024.

The DMO described the award as a reflection of its steady efforts to build a strong, transparent and well-structured debt market that supports economic growth and financial stability in Nigeria.