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Nigeria’s Total Debt Stock Grows To 24.3trn (12.25%) – DMO

The Debt Management Office (DMO) has announced that Nigeria debt increased by 12.5%, totalling  N24.387 trillion.
Director General of the DMO Ms. Patience Oniha made this disclosure at the public breakdown of the nation’s public debt data in Abuja on Thursday, april 4, 2019.
  According to Oniha: “the Total Public Debt stood at N24.387 trillion or USD79.437 billion as at December 31, 2018 representing a year-on-year growth of 12.25%.
From the breakdown, it was revealed that the FGN External Debt in 2018 was N6. 460 trillion up from N4.527 trillion representing a 42.69% increase.
“The FGN Domestic Debt in 2018 on the other hand was N12,774 trillion up from N12,589 trillion the previous year representing a 1.46% increase.
“The sum of both external and domestic FGN debts was put at N19,234 trillion while the total sum of the external and domestic debt stock of the 36 states and the Federal Capital Territory (FCT) was put at  N5,152 trillion broken down as N3,853 trillion domestic debts and N1,298 trillion external debts.”
The DMO boss further stated: “Progress was made towards achieving the target Debt Stock mix of 60% (Domestic) and 40% (External). The share of Domestic Debt dropped to 68.18% from 73.36% as at December 31, 2017 thereby achieving a Mix of 68.18% and 31.82% in the Debt Stock.
  “The DMO strategy of using relatively cheaper and longer tenored external funds is achieving the expected objectives.
“Some of the objectives were: to create more space for other borrowers in the domestic market, extend the average tenor of the debt stock in order to reduce refinancing risk and increase External Reserves.”
  The implementation of the strategy led to an injection of N855 billion through the redemption of Nigerian Treasury Bills in 2018 and a general drop in the FGN’s borrowing rate in the domestic market from over 18% p.a. in 2017 to 14 – 15% p.a. in 2018.
With regards to the N3.4 trillion Promissory Notes Issuance to Settle Inherited Local Debts, Oniha disclosed that the purpose is to use it to settle Inherited Local Debts and Contractual Obligations of the Federal Government.
The programme, which is estimated at N3.4trillion, Oniha said covers: Contractors; Exporters; Judgement Debt; State Governments and Oil Marketing companies.

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