The Leadership online news has taken to its X handle and announced that, the Federal Government has tightened its grip on Nigeria’s bond market, raising a staggering ₦2.769 trillion within just eight months, dwarfing corporate listings that amounted to a paltry ₦43.2 billion.
The massive disparity underscores the government’s growing dependence on the debt market to fund national projects amid dwindling private-sector participation.
Figures from the Nigerian Exchange (NGX) reveal that out of ₦3.201 trillion total new listings recorded so far, the Federal Government accounted for 86.5% of the volume through the Debt Management Office (DMO). In contrast, Dangote Cement raised ₦38.199 billion, while TSL SPV Plc listed ₦5 billion.
Analysts attribute the strong appetite for Federal Government bonds to attractive yields, stability, and lower risks, particularly appealing to Pension Fund Administrators (PFAs) and cautious investors who favour safer fixed-income instruments over volatile equities.
“Investors see government bonds as a safer bet in these uncertain times,” one analyst observed, stressing that oversubscription reflects confidence in Nigeria’s ability to honour debt obligations.
Tinubu’s $1 Trillion Economy Ambition
The administration of President Bola Tinubu has set an ambitious target: growing Nigeria’s GDP to $1 trillion by 2030 through infrastructure expansion, economic diplomacy, and private-sector engagement. However, experts warn that the ballooning debt profile could undermine these goals if not managed prudently.
At a recent Capital Market Committee (CMC) meeting, Finance Minister Wale Edun, represented by Minister of State Doris Uzoka-Anite, highlighted reforms since 2015 that improved governance, introduced new financial products, and strengthened regulation.
Edun disclosed that the Capital Market Master Plan (2015–2025) has boosted competitiveness and market sophistication, while the revised version will now emphasise digitalisation, sustainability, inclusion, and innovation.
The new legislation, he added, modernises Nigeria’s market framework by covering digital assets, crowdfunding, and streamlined enforcement.
Despite the bond boom, market leaders are raising red flags.
Oluropo Dada, Registrar of the Chartered Institute of Stockbrokers (CIS), and Ayorinde Adeonipekun urged the Federal Government to harmonise fiscal, trade, and monetary policies to rebuild investor confidence.
They also called for a national savings strategy, greater support for manufacturing and technology, and more public-private partnerships (PPPs) to fund infrastructure.
Vice President of Highcap Securities, David Adonri, warned that Nigeria’s mounting debt burden could spiral into unsustainability. He noted that corporate listings have declined sharply, with more firms exiting the NGX than joining it, largely due to weak capital formation and low investor confidence.
Adonri further urged government to compel oil majors and multinationals—who dominate Nigeria’s GDP—to list on the NGX by offering tax holidays, government contracts, and incentives to deepen the capital market.
While Nigeria’s debt-fuelled market dominance keeps liquidity flowing in the short term, analysts caution that over-reliance on borrowing without corresponding private-sector growth could jeopardise long-term stability.
As one expert summed it up:
> “Nigeria needs more than bonds to build a $1 trillion economy—it needs investor trust, policy stability, and real private-sector participation.”
PIONEER NEWS 