Speaking in the statement, DMO said those criticising the government’s approach failed to consider its borrowing needs as captured in the annual budgets, medium-term expenditure framework, as well as debt management strategy.
“Successive debt management strategies have often indicated that the federal government of Nigeria’s preferred source of external borrowing is concessional sources rather than commercial sources such as eurobonds,” the statement reads.
“While loans from concessional sources such as the International Development Association are relatively cheaper as stated above, they are limited in amount. In addition, they are not available for financing infrastructure and other capital projects. On fears that eurobonds would likely lead to debt distress, the DMO said the country needs to generate significantly more revenue beyond current levels.