Portfolio Management

Overview

The Portfolio Management Department (PMD) is part of DMO’s Front Office. The other two Departments considered part of Front Office include Market Development Department (MDD) and Strategic Programmes Department (SPD). The PMD is responsible for executing transactions in financial markets, including the management of auctions and other forms of borrowing. It is responsible for external debt negotiations, other forms of negotiations, and all other funding operations. Its staff members are responsible for implementing short-term strategies related to bond issuances in domestic money and capital markets.

The functions of the department relates to the mobilization of financial resources to meet public sector needs, especially its declared fiscal deficit. It uses varying sources of funds, domestic or external, to negotiate and contract new borrowing for the nation. In the course of performing these functions, the department ensures that established rules and approved guidelines and policies are strictly followed, and that operations are kept within bounds. To achieve this, it shall work with the Monitoring, Evaluation and Special Duties Unit of the D-G’s Office to ensure that such rules and guidelines are complied with. Its activities are also inter-linked with those of Market Development Department, Debt Recording and Settlement Department, and the Strategic Programmes Department.

Departmental Structure and Activities

The Portfolio Management Department is headed by a Head of Department, who is a Director. He is supported by three Team Leaders charged with the key role of overseeing the activities of the three Units. The following is a general description of the units and sections of the department:

Loans and Other Financing Products Unit (LFP): This unit is responsible for leading External Debt Negotiations, drafting and vetting Loan Agreements and terms of Government Guarantees, Processing Guarantees, Processing Public Private Partnership (PPP) projects, review of financial implications of various projects (includes Cost Benefit Analysis of projects, Cash Flow Analysis, etc.); Reviewing States’ request for borrowing and Structuring of other Financing Products. The LFP unit is headed by a Team Leader.

Contingent Liability & Risk Asset Management (CL&RAM) Unit: This unit is responsible for the management of the DMO’s risk assets creation activities with particular reference to on-lent facilities to Ministries, Departments and Agencies (MDAs). The unit is also responsible for effectively and efficiently managing contingent liabilities arising from Sovereign Guarantees, in line with the approved Framework for the management of Government contingent liabilities. Other responsibilities include developing and implementing mechanisms for Special Government Financing (SGF) and the management of loans granted to other countries by the FGN. The CL& RAM Unit is headed by a Team Leader.

Securities Issuance Unit (SIU): This unit is responsible for Issuances of Federal Government Debt Securities and other related activities towards achieving low cost and tolerable risk limits for FG domestic borrowing. Some of the specific tasks include the development of the FGN Securities Issuance Programme, Conducting FGN Bond Auctions and all Post allotment activities, as well as developing analytical framework for the domestic debt borrowing. The SI Unit is headed by a Team Leader.

The SIU disseminates timely information to all stakeholders regularly on the DMO’s website through the following publications:

SN	Document	Responsibility	Frequency
1	Nigerian Treasury Bills Auction Results	SIU	Bi-Monthly
2	Offer Circular	SIU	Monthly
3	Summary of FGN Bond Auction	SIU	Monthly
4	FGN Bond Issuance Calendar	SIU	Quarterly
5	Information pertaining to FGN Operations	SIU	Ad-hoc