DMO says Nigeria owes N6.88tn

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DMO says Nigeria owes N6.88tn

MAY 2, 2012 BY EVEREST AMAEFULE, ABUJA

 

The country’s total debt profile now stands at $44.28bn (N6.88tn), according to the Debt Management Office.

Statistics obtained from the DMO on Monday showed that the domestic debt component of the total indebtedness stood at $38.37bn (N5.97tn), while the external debt stood at $5.91bn (N919.44bn) as at March 31, 2012.

Details of the external debt balance showed that multilateral financial institutions accounted for 83.28 per cent of the country’s total.

The International Bank for Reconstruction and Development, a member of the World Bank Group, accounts for $6.31m; while another member of the group, the International Development Association is owed $4.29bn.

The International Fund for Agricultural Development, also a member of the World Bank group, is owed $70.25m.

The African Development Bank is owed $43.55m, while the African Development Fund is owed $387.23m.

Non-Paris Club debt sources account for 8.26 per cent of the nation’s external debt. These include European Development Fund, $110.08m; and the Islamic Development Fund, $14.56m.

Bilateral loans account for $433.84m, while commercial loans contribute $54.63m.

The $500m, which Nigeria borrowed from the International Capital Market in 2011, accounts for the remaining 8.26 per cent of the external debt.

Details of the domestic debts, on the other hand, showed that FGN bonds accounted for N3.67tn or 61.44 per cent of the money borrowed by the Federal Government from internal sources.

Nigerian Treasury Bills account for N1.95tn or 32.63 per cent, while treasury bonds account for N353.73m or 5.93 per cent.

As at March 31, 2011, the nation’s external debt stood at $5.23bn, while the domestic debt stood at N4.87tn.

This means that within a one-year period, the external debt stock rose by 13 per cent, while the domestic debt stock rose by 22.59 per cent.

The Federal Government had recently disclosed to the National Assembly its plan to borrow $8bn from external sources for infrastructure development.

Should it go ahead with the loan, it will balloon the country’s foreign debt to $13.91bn.

The Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, had not hidden her preference for foreign loans over domestic borrowings.

Although she had championed the exit of the country from the Paris Club of Creditors during her first tenure as Finance Minister, Okonjo-Iweala had in recent times insisted that the ballooning domestic debt was not healthy for the economy.

 

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