The Debt Management Office (DMO) explained that the Medium-Term Debt Management Strategy (MTDS) for 2024–2027 is designed to guide how the government meets its funding needs while keeping public debt sustainable.

The plan considers both cost and risk, aims to improve the structure of Nigeria’s debt portfolio, and seeks to further deepen the local debt market through fresh financial products.

“In furtherance of the adoption of international debt practices, Nigeria’s Medium-Term Debt Management Strategy (MTDS) for 2024 – 2027 has been approved by the Federal Executive Council.

“In preparing the MTDS, the Debt Management Office (DMO) collaborated with other stakeholders in the monetary and fiscal space. The DMO also received technical support from the World Bank and the IMF,” the agency said.

According to the DMO, the framework was developed with input from key players in fiscal and monetary policy and benefited from technical assistance provided by the World Bank and the International Monetary Fund (IMF). The Federal Executive Council has already given its approval.

A major highlight of the strategy is the shift towards more borrowing within the country. The portfolio mix has been set at 55% domestic debt and 45% external debt, a move aimed at reducing exposure to exchange rate volatility.

In addition, debt service payments are expected to remain below 4.5% of GDP, so that repayments do not swallow a large share of government revenue.

The plan also places restrictions on short-term foreign borrowing. Such loans must not exceed 10% of Nigeria’s external reserves, while the government will steer clear of loans that require quick repayment in order to avoid pressure on public finances.

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The Ministry of Finance disclosed this via its official handle on X stating that the fiscal incentives were aimed at boosting investments in the oil and gas sector.

The orders from the Ministry are titled; Value Added Tax (VAT) Modification Order 2024 and Notice of Tax Incentives for Deep Offshore Oil & Gas Production, in accordance with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.). Order 2024.

The VAT Modification Order 2024 exempts key energy products like Diesel, LPG, CNG, and clean energy infrastructure, such as electric vehicles and clean cooking equipment, from VAT.

According to the Ministry, these exemptions aim to reduce living costs, improve energy security, and support Nigeria’s shift to cleaner energy.

The Notice of Tax Incentives for Deep Offshore Oil & Gas Production introduces new tax reliefs to attract global investments to Nigeria’s deep offshore projects.

The statement from the Ministry noted that the tax reliefs are Part of President Bola Ahmed Tinubu’s broader policy reforms and measures which aim to boost the energy sector and strengthen Nigeria’s global competitiveness in oil and gas.

What the Federal government is saying “The Honorable Minister of Finance and Coordinating Minister of the Economy Mr. Wale Edun has unveiled two major fiscal incentives aimed at revitalizing Nigeria’s oil and gas sector:”

”Notice of Tax Incentives for Deep Offshore Oil & Gas Production, by the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.”

“The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.”

“These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.”

In recent times, the cost of cooking gas and other energy products has increased significantly due to currency weakness and other inflationary pressures. Recent checks revealed that the cost of filling a 5kg cylinder has risen to almost N7000.

In October last year, the federal government excluded VAT collection from diesel over the increase in prices and its impact on inflation. However, the exclusion was just for six months and the order expired in April 2024.

Furthermore, Nigeria’s oil and gas sector has not seen significant investment in the past decade owing to inconsistent government policies and regulations. In contrast, the industry has seen significant divestment from International Oil Companies (IOCs) such as Shell, ExxonMobil, ENI, and others from onshore fields.

Offshore fields have proven to be more attractive to these IOCs in the past years due to relatively reduced risks and higher reserves. Nigeria has an estimated 200 trillion cubic feet of gas reserves as of 2023.

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The 3-day event brought together esteemed leaders and entrepreneurs, to forge strategic collaborations for growth. Honourable (Dr.) Abike Dabiri-Erewa, CEO NiDCOM, hosted the event, highlighting the pivotal role of the diaspora in Nigeria’s national development.

Distinguished guests in attendance included the Minister of Finance/Coordinating Minister of the Economy, Mr. Wale Edun and the Minister of Interior, Olubunmi Tunji-Ojo. The Minister of Sports Development, Senator John Enoh, and the Minister of the Federal Ministry of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, also attended the summit, further enriching the discourse with their perspectives on the intersection of diaspora investment and various sectors crucial to national development.

Coronation Group Limited, Africa’s investment management powerhouse, proudly sponsored the event, as part of a broader collaboration to democratise access to financial solutions for Nigerians living in the diaspora. The Coronation Group unveiled a portal on the NiDCOM website, designed to provide a safe and convenient avenue for diaspora members to access financial solutions.

Funke Feyisitan-Ladimeji, representing Coronation Group Limited said: “The Nigeria Diaspora Investment Summit underscores the significant role the diaspora community plays in shaping our nation’s economic landscape. At Coronation Group, our participation reflects our shared goal of financial independence and wealth creation for Nigerians everywhere. Through our partnership with NiDCOM, we will provide Nigerians in diaspora with technology-enabled platforms to enable seamless and secure access to superior financial services. We will also provide free access to a robust financial literacy and education program, to ensure the community is empowered to make savvy investment decisions. Overall, we aim to create an environment where financial security and prosperity are not just aspirations, but attainable realities for every member of the Nigerian diaspora community.”

A key feature of the summit was the pitch session, where over 20 passionate owners of start-ups presented their innovative business ideas to potential investors. The businesses span diverse sectors such as manufacturing, finance, fintech, education, and professional services. This platform provided a unique opportunity for entrepreneurs to present their ventures to a discerning audience, fostering collaboration and investment.

The 6th Nigeria Diaspora Investment Summit promises to be a pivotal moment in harnessing the expertise and resources of the diaspora community for the benefit of Nigeria’s socio-economic landscape. As the summit progresses, attendees can expect engaging discussions, strategic partnerships, and the exploration of opportunities that align with the summit’s theme.

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