Nigeria’s Debt Profile Stands at N24.387trn
Nigeria’s total debt as at December 31, 2018 stands at N24.387 trillion or $79.437 billion.
Director General of the Debt Management Office, Patience Oniha who stated this Thursday in Abuja also revealed that the figure increased by 12.25% from N21.725 trillion in 2017 to N24.387 trillion in 2018.
According to the DMO Boss, the figure comprises foreign and local debts of the Federal, States, Local Government, and the Federal Capital Territory.
Further details provided by the DMO boss showed that more progress was made towards achieving the target debt stock mix of 60% (domestic) and 40% (external).
Oniha noted that the share of domestic debt dropped to 68.18% from 73.36% as at December 31, 2017 thereby achieving a mix 68.18% and 31.82% in the debt stock.
According to her, the strategy of using relatively cheaper and longer tenored external funds is achieving the expected objectives, adding that 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.
Mrs Oniha further said that the implementation of the strategy led to an injection of N855 billion through the redemption of Nigeria Treasury bills in 2018 and a general drop in the FGN’s borrowing rate in the domestic market from over 18% per annum in 2017 to14-15% per annum in 2018.
Oniha also revealed that the FGN’s domestic stock includes N331.12 billion Promissory Notes issued to oil marketing companies and state governments in December 2018.
She revealed some of its major plans in 2019 to include more of project-tied borrowing and access more external borrowing from concessional sources.
According to her, the DMO plans to issue 30-year Federal Government of Nigeria bonds for the first time, stressing that the issuance of the bonds 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 FGN.
She announced that other areas of focus would be the management of risks associated with Debt stock to mitigate Debt service costs.