Overview

1.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.

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. 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 two Team Leaders charged with the key role of overseeing the activities of the two Units. Figure 10 shows the departmental structure. The following is a general description of the units and sections of the department:

• Security Issuance Unit (SIU): The Unit is responsible for Securities Issuances, and related activities. Some of the specific tasks include Bond Issuance Programme of the FGN, Appointment of Stockbrokers, Advertisement of Offer Circular, Conduct of Auction, Post allotment activities, Develop indicators for domestic debt sustainability, Develop analytical framework for the domestic debt. The SIU Unit is headed by a Team Leader.

• Loans and Other Financing Products Unit (LFP): The LFP is responsible for leading Debt Negotiations, drafting and vetting Loan Agreements and terms of Government Guarantees, Processing Guarantees, Processing Public Private Partnership (PPP) projects, JVCs, BOTs, On-Lending activities, Review of Financial Implications of various projects (includes Cost Benefit Analysis of projects, Cash Flow Analysis, etc); Structuring of other Financing Products. The LFP unit is headed by a Team Leader.