04-06-2018, 01:10 PM
FG spent N3.72trn on domestic debt servicing in 3 years![[Image: images-7.jpeg]](http://authorityngr.com/wp-content/uploads/2018/04/images-7.jpeg)
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By Chika Otuchikere
Statistics from the Debt Management Office (DMO) shows that the Federal Government has spent a total of N3.72tn to service local debts in the past three years.
The statistics also revealed that the Federal Government spent a total of N1.48tn on actual debt servicing in 2017.
With N1.23tn spent in 2016 and N1.02tn spent in 2015 on domestic debt servicing, these add to a total of N3.72tn in the last three years.
The highest interest was paid on the FGN Bonds which was one of the instruments the Federal Government used to borrow from the domestic debt market.
For instance, in 2017, the Federal Government paid N982.66bn on the FGN Bonds. A total of N445.13bn was paid on Nigerian Treasury Bills; N22.99bn was paid on Treasury Bonds; while N25bn of the principal was repaid. An interest of N442bn was paid on Savings Bonds.
Questions have been raised about the sustainability of the country’s debt burden given the spree of the government’s servicing of the domestic debts.
Meanwhile, the Federal Government affirmed that the nation’s debt burden is sustainable being less than 20 per cent of the country’s Gross Domestic Product.
The DMO in a recent statement put the country’s total debt profile at N21.73tn. It said the debt stock at the end of December 2017 showed that external debt was 26.64 per cent of the portfolio, up from 20.04 per cent in 2016, while domestic debt was 73.36 per cent, down from 79.96 per cent a year earlier.
http://authorityngr.com/2018/04/06/fg-sp...n-3-years/
[url=http://authorityngr.com/#tumblr][/url]
By Chika Otuchikere
Statistics from the Debt Management Office (DMO) shows that the Federal Government has spent a total of N3.72tn to service local debts in the past three years.
The statistics also revealed that the Federal Government spent a total of N1.48tn on actual debt servicing in 2017.
With N1.23tn spent in 2016 and N1.02tn spent in 2015 on domestic debt servicing, these add to a total of N3.72tn in the last three years.
The highest interest was paid on the FGN Bonds which was one of the instruments the Federal Government used to borrow from the domestic debt market.
For instance, in 2017, the Federal Government paid N982.66bn on the FGN Bonds. A total of N445.13bn was paid on Nigerian Treasury Bills; N22.99bn was paid on Treasury Bonds; while N25bn of the principal was repaid. An interest of N442bn was paid on Savings Bonds.
Questions have been raised about the sustainability of the country’s debt burden given the spree of the government’s servicing of the domestic debts.
Meanwhile, the Federal Government affirmed that the nation’s debt burden is sustainable being less than 20 per cent of the country’s Gross Domestic Product.
The DMO in a recent statement put the country’s total debt profile at N21.73tn. It said the debt stock at the end of December 2017 showed that external debt was 26.64 per cent of the portfolio, up from 20.04 per cent in 2016, while domestic debt was 73.36 per cent, down from 79.96 per cent a year earlier.
http://authorityngr.com/2018/04/06/fg-sp...n-3-years/