Connect with us

News

Nigeria’s Total Debt Hits N24.39 Trillion, Rises By N2.66 Trillion In One Year

Published

on

Nigeria's Total Debt Hits N24.39 Trillion, Rises By N2.66 Trillion In One Year 3

The Director-General, Debt Management Office (DMO), Ms. Patience Oniha says that the total public debt of Nigeria as at Dec. 31, 2018, is N24.38 trillion.

Oniha, who made the disclosure during a news conference on Thursday in Abuja, said that the figure comprised of debt owed by the Federal Government, States and Federal Capital Territory (FCT).

According to her, the funds were borrowed to fund projects, to finance budget deficit and to refinance maturing obligations.

She explained that the figure was N2.66 trillion higher than the N21.7 trillion recorded as at Dec. 31, 2017, and represents year-on-year growth of 12.25 percent.

“Further details provided in the report showed that more progress was made towards achieving the target Debt Stock mix of 60 percent (Domestic) and 40 percent (External).

“The share of domestic debt dropped to 68.18 percent from 73.36 percent as at Dec. 31, 2017, thereby achieving a mix of 68.18 percent and 31.82 percent in the debt stock.”

She said the federal government loans accounted for 78 percent of the figure, while states and the FCT accounted for 22 percent.

The Federal Government, she said, has an external debt stock of N6.4 trillion and Domestic at N17.11 trillion, culminating in N19.23 trillion, while the states and the FCT have an external debt of N1.25 trillion and N3.85 trillion domestic debt, culminating in N5.15 trillion.

Oniha said that the Federal Government’s domestic debt stock includes N331.12 billion Promissory Notes issued to Oil Marketing Companies and State Governments in December 2018.

She added that the strategy of using relatively cheaper and longer tenor external funds was achieving the expected objectives, some of which was to create more space for other borrowers in the domestic market.

“Other objectives are to extend the average tenor of the debt stock in order to reduce refinancing risk and increase external reserves.”

She also said that the implementation of the strategy led to an injection of N855 billion through the redemption of Nigerian Treasury Bills (NTBs) in 2018.

She added that it also effected a general drop in the Federal Government’s borrowing rate in the domestic market from over 18 percent per annum in 2017 to between 14 and 15 percent per annum in 2018.

The DG said that some of the major plans of the DMO in 2019 were to undertake more of project-tied borrowing and access more external borrowing from concessional sources.

According to her, there are plans to issue 30-year Federal Government Bonds for the first time.

“The issuance of the bond will meet the needs of annuity funds and other long term investors while also developing the domestic capital market and reducing the re-financing risk of the Federal Government.

“Another area of focus will be the management of risks associated with the debt stock to mitigate debt service costs.”

She said that as captured in the 2019 budget proposal before the National Assembly, the Federal Government would borrow N1.6 trillion to finance the budget deficit.

She said N824 billion of the amount would be borrowed domestically through Federal Government Bonds, Sukuk, Green Bonds and Savings Bonds.

The other N824 billion is expected to be financed externally from concessional sources as they are cheaper and are longer-termed funds for infrastructure, she added.

Oniha said that the planned N15 billion Green Bonds and the infrastructure bonds would be issued in the second quarter of 2019.

Queen Wokoma Slams Those Criticizing Her Outfit At Junior Pope’s Burial [Photos]
Entertainment14 hours ago

Queen Wokoma Slams Those Criticizing Her Outfit At Junior Pope’s Burial [Photos]

Skepta Dances To Portable’s New Song ‘Spiderman’ Detailing His Arrest [Video]
Entertainment15 hours ago

Skepta Dances To Portable’s New Song ‘Spiderman’ Detailing His Arrest [Video]

E-Money Threatens Women Who Accused Him Of Having Romantic Affair With Junior Pope’s Wife
Celebrities15 hours ago

E-Money Threatens Women Who Accused Him Of Having Romantic Affair With Junior Pope’s Wife

"My Ex-Wife Had 21 Miscarriages, She Sent Her Friends To Beat Me Up" - Oritsefemi [Video]
Entertainment19 hours ago

“My Ex-Wife Had 21 Miscarriages, She Sent Her Friends To Beat Me Up” – Oritsefemi [Video]

Photos And Video From Junior Pope's Burial In Enugu
Entertainment20 hours ago

Photos And Video From Junior Pope’s Burial In Enugu

I Accommodated Burna Boy After He Cried To Me During Fight With His Mum - Oritse Femi [Video]
Entertainment20 hours ago

I Accommodated Burna Boy After He Cried To Me During Fight With His Mum – Oritse Femi [Video]

BET Awards 2024: Ayra Starr, Burna Boy, Tems, Asake And Seyi Vibez Bag Nominations [Full List]
Entertainment21 hours ago

BET Awards 2024: Ayra Starr, Burna Boy, Tems, Asake And Seyi Vibez Bag Nominations [Full List]

Foundation Offers N50 Million To Anyone With Useful Information On Mohbad's Death
Entertainment24 hours ago

Foundation Offers N50 Million To Anyone With Useful Information On Mohbad’s Death

APPLY: FG Unveils Portal For Student Loan Applications
Education1 day ago

APPLY: FG Unveils Portal For Student Loan Applications

Why Autopsy Failed To Reveal Cause Of Mohbad's Death - Pathologist
Entertainment1 day ago

Why Autopsy Failed To Reveal Cause Of Mohbad’s Death – Pathologist

Trends in Summer Fashion: What's Hot for 2024 4
Business2 days ago

Trends in Summer Fashion: What’s Hot for 2024

Kizz Daniel Admits To Cheating On His Wife, Months After He Was Accused Of Adultery
Entertainment2 days ago

Kizz Daniel Admits To Cheating On His Wife, Months After He Was Accused Of Adultery

Chelsea Suffer ‘Painful’ Blow As Reece James Gets Extended Four-Match Ban
Sports2 days ago

Chelsea Suffer ‘Painful’ Blow As Reece James Gets Extended Four-Match Ban

Burna Boy Reveals Names Of Nigerian Artists Who Impacted His Music Career [Video]
Entertainment2 days ago

Burna Boy Reveals Names Of Nigerian Artists Who Impacted His Music Career [Video]

"I’ve Been Very Uncomfortable" - Peter Okoye Undergoes Hair Transplant In Turkey [Video]
Entertainment2 days ago

“I’ve Been Very Uncomfortable” – Peter Okoye Undergoes Hair Transplant In Turkey [Video]

Portable Releases New Song “Spider Man” Detailing His Arrest Over Car Debt [Listen]
Entertainment2 days ago

Portable Releases New Song “Spider Man” Detailing His Arrest Over Car Debt [Listen]

Mayorkun Finally Speaks On Accusations By Nickie Dabarbie Of Money Ritual Attempt
Entertainment2 days ago

Mayorkun Finally Speaks On Accusations By Nickie Dabarbie Of Money Ritual Attempt

Hundreds Arrested In New Caledonia As France Declares State Of Emergency Over Deadly Protest
World News2 days ago

Hundreds Arrested In New Caledonia As France Declares State Of Emergency Over Deadly Protest

Portable Released From Police Custody After Meeting Bail Condition
Entertainment2 days ago

Portable Released From Police Custody After Meeting Bail Condition

Portable Detained In Police Custody After Failing To Meet Bail Conditions
Entertainment3 days ago

Portable Detained In Police Custody After Failing To Meet Bail Conditions