1. The Portfolio Management Department (DMO’s front office), in principle, is responsible for executing transactions in financial markets, including the management of auctions and other forms of borrowing. It is responsible for debt negotiations and all other funding operations. Its staff are responsible for implementing short-term strategies related to bond negotiation and issuances in domestic money and capital markets.
2. 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 and Compliance Section of the Policy, Strategy, & Risk Management department to ensure that such rules and guidelines are complied with.

Departmental Structure

1. The Portfolio Management Department is headed by a Head of Department, who could be a Director. He is supported by three Group Leaders charged with different functions. Figure 10 shows the departmental structure. The following is a general description of the units and sections of the department:

   • Domestic Debt Operations Unit: responsible for Market Development and Securities Issuances. The Unit has two sections, each supporting its main objectives: Market Development and Security Issuances. Each of the Sections is headed by a Team Leader.
   • External Debt Negotiation Unit: responsible for leading debt negations, drafting and vetting loan agreements and terms of government guarantees, and attracting ODA loans and grants;
   • Debt Conversion Unit: responsible for exercising the powers of the Debt Conversion Committee and of acting smartly in taking advantage of market imperfections to reduce Nigeria’s debt by intervening in the market to reduce its indebtedness and cost of debt service through debt swaps, debt buy-backs, and repos at the appropriate stage of development of the country’s bond market.