Federal Government
President Muhammadu Buhari

FG borrows N1.32trn in 6-month, hike public debt to N25.7trn

The Federal Government,FG, has raised debt finance as fiscal pressure continues to bite.

The increased public debt,according to analysts, automatically raised  debt service cost in the fiscal spending plan for 2020.

Recent data from the Debt Management Office shows that the economy is in debit side to the tune of N25.7 trillion which came from both domestic and external sources.

Public debt portfolio has been on ascendancy in the recent time as budget deficits increase, which analysts consider as a result of dwindling revenues acrued to the government.

Read:https://dmarketforces.com/the-economy-risks-being-stuck-in-the-cycle-of-low-growth-high-unemployment-and-high-poverty/

At the end of year 2018, Nigeria’s total debt stock stood at N24.38 trillion, thus implies  an increase in debt stock of N1.32 trillion in six month.

The DMO said that the current total debt stock comprised both the Federal Government debt, that of the 36 states and the Federal Capital Territory (FCT).

For the Federal Government, the DMO said it owed N20.42 trillion, while the states and FCT owed N5.27 trillion.

Of the Federal Government debt, N7.01 trillion was categorised as external debt, while N13.412 trillion was categorised as domestic debt.

For the states and the FCT, N1.309 trillion was owed externally, while N3.966 trillion was owed domestically, the DMO said.

Giving details of the Federal Government’s domestic debt stock by instrument, the DMO said Bonds accounted for N9.691 trillion and Treasury Bills N2.651 trillion.

Others are Treasury Bonds N125.9 billion, Savings Bond N10.431 billion, Sukuk N200 billion, Green Bond N25.69 billion and Promissory Notes N707.7 billion.

Meanwhile for debt service in the second quarter of 2019, the DMO said that the nation had spent N76.951 billion

 

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