TheNewsGuru

Tag: Debt Stock

  • Nigeria’s woes compound as public debt stock hits N42 trillion

    Nigeria’s woes compound as public debt stock hits N42 trillion

    The Debt Management Office (DMO) said Nigeria’s total public debt stock, which was N41.60 trillion (100.07 billion dollars) in March rose to N42.84 trillion (103.31 billion dollars) by June.

    According to a statement obtained from DMO’s website on Tuesday, the total debt represents the domestic and external debt stocks of the Federal Government of Nigeria (FGN), the 36 State Governments and the Federal Capital Territory (FCT).

    It, however, said that while the foreign component of the debt remained at the same level of N16.61 trillion (39.96 billion dollars), the local component increased to N26.23 trillion (63.24 billion dollars). The local component of the country’s borrowings was N24,98 trillion (60.1billion dollars) as of March 30.

    The DMO said that a larger percentage of the external debts were concessional and semi-concessional loans.

    “Over 58 per cent of the external debt stock are concessional and semi-concessional loans.

    “They were obtained from multilateral lenders such as the World Bank, International Monetary Fund, Afrexim and African Development Bank, and bilateral lenders including Germany, China, Japan, India and France.

    “The total domestic debt stock increased from N24,98 trillion (60.1billion dollars) in March to N26.23 trillion (63.24 billion dollars) in June.

    “This is due to new borrowings by the FGN to part-finance the deficit in the 2022 Appropriation (Repeal and Enactment) Act, as well as new borrowings by state governments and the FCT,” the DMO said.

    It said that the total public Debt-to-GDP ratio remained within limits, at 23.06 per cent, while Debt-Service-to-Revenue was still high.

    It added that the federal government was committed to increasing revenue so as to reduce the amount that went into debt servicing.

    “The Debt-to-GDP as at June 30, was 23.06 per cent compared to the ratio of 23.27 as at March 30. It remains within Nigeria’s self-imposed limit of 40 per cent.

    “While the Federal Government continues to implement revenue-generating initiatives in the non-oil sector and block leakages in the oil sector, Debt Service-to-Revenue ratio remains high,” it said.

    Meanwhile, the DMO is set to take its FGN Securities Awareness Programme to Yola on Wednesday and Umuahia on Sept. 29.

    According to Patience Oniha, DMO’s Director-General, the programme is designed to sensitise Nigerians on the huge investment benefits in FGN securities, thereby boosting financial inclusion.

  • BREAKING: Nigeria’s public debt stock hits N31 trillion in 3 months

    BREAKING: Nigeria’s public debt stock hits N31 trillion in 3 months

    The total public debt stock of Nigeria has risen by 8.3% to N31.009 trillion or $85.897 billion as at June 30, 2020 from N28.628 trillion in March 2020.

    TheNewsGuru.com (TNG) reports the Debt Management Office (DMO) made this known in a statement it published on Wednesday.

    According to the DMO, the figure comprised the total debt stock of the federal government, the 36 State Governments and the Federal Capital Territory (FCT).

    It ascribed the rise to the USD3.36 Billion Budget Support Loan from the International Monetary Fund, New Domestic Borrowing to finance the Revised 2020 Appropriation Act including the issuance of the N162.557 Billion Sukuk, and Promissory Notes issued to settle Claims of Exporters.

    It also stated that the figure could rise further when the balance of the new borrowing is raised for the implementation of the current budget.

    The statement reads, “The Debt Management Office (DMO) has released information on the Public Debt Stock as at June 30, 2020.

    “The data shows that in Naira Terms, the Total Public Debt Stock which comprises the Debt Stock of the Federal Government, the 36 State Governments and the Federal Capital Territory stood at N31.009 Trillion or USD85.897 Billion.

    “The corresponding figures for March 31, 2020 were N28.628 Trillion or USD79.303 Billion.

    “The increase in the Debt Stock by N2.381 Trillion or USD6.593 Billion was accounted for by the USD3.36 Billion Budget Support Loan from the International Monetary Fund, New Domestic Borrowing to finance the Revised 2020 Appropriation Act including the issuance of the N162.557 Billion Sukuk, and Promissory Notes issued to settle Claims of Exporters.

    “The DMO expects the Public Debt Stock to grow as the balance of the New Domestic Borrowing is raised and expected disbursements are made by the World Bank, African Development Bank and the Islamic Development Bank which were arranged to finance the 2020 Budget.

    “It will be recalled that the 2020 Appropriation Act had to be revised in the face of the adverse and severe impact of COVID-19 on Government’s Revenues and increased expenditure needs on health and economic stimulus amongst others.

    “Additional Promissory Notes are expected to be issued in the course of the year, this, and new borrowings by State Governments are also expected to increase the Public Debt Stock”.