Nigeria’s total debt stock grows to 24.3 trillion, says DMO | Nairalaw

The Debt Management Office (DMO) has announced Nigeria’s total
debt stock comprising external and domestic debts stand at N24.387
trillion.

Director General of the DMO Ms. Patience Oniha made this
disclosure at the public breakdown of the nation’s public debt data
in Abuja on Thursday.

According to Oniha: “the Total Public Debt stood at N24.387
trillion or USD79.437 billion as at December 31, 2018 representing
a year-on-year growth of 12.25%.

From the breakdown, it was revealed that the FGN External Debt
in 2018 was N6. 460 trillion up from N4.527 trillion representing a
42.69% increase.

“The FGN Domestic Debt in 2018 on the other hand was N12,774
trillion up from N12,589 trillion the previous year representing a
1.46% increase.

“The sum of both external and domestic FGN debts was put at
N19,234 trillion while the total sum of the external and domestic
debt stock of the 36 states and the Federal Capital Territory (FCT)
was put at N5,152 trillion broken down as N3,853 trillion domestic
debts and N1,298 trillion external debts.”

The DMO boss further stated: “Progress was made towards
achieving the target Debt Stock mix of 60% (Domestic) and 40%
(External). The share of Domestic Debt dropped to 68.18% from
73.36% as at December 31, 2017 thereby achieving a Mix of 68.18%
and 31.82% in the Debt Stock.

“The DMO strategy of using relatively cheaper and longer tenored
external funds is achieving the expected objectives.

“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.”

The implementation of the strategy led to an injection of N855
billion through the redemption of Nigerian Treasury Bills in 2018
and a general drop in the FGN’s borrowing rate in the domestic
market from over 18% p.a. in 2017 to 14 – 15% p.a. in 2018.

With regards to the N3.4 trillion Promissory Notes Issuance to
Settle Inherited Local Debts, Oniha disclosed that the purpose is
to use it to settle Inherited Local Debts and Contractual
Obligations of the Federal Government.

The programme, which is estimated at N3.4trillion, Oniha said
covers: Contractors; Exporters; Judgement Debt; State Governments
and Oil Marketing companies.

The features of the promissory notes to be issued are that it
will serve as Sovereign and negotiable Instruments and also have
Liquid Asset Status.

The DMO boss stated the FGN’s Domestic Debt Stock includes
N331.12 billion Promissory Notes issued to Oil Marketing Companies
and State Governments in December 2018.”

The benefits of issuing the promissory noted the DMO boss stated
include: “it will provide stimulus to the economy and unlock
investment across a number of sectors currently having liquidity
issues; Positive impact on the non-performing loan ratios of banks
which will in turn, increase the banks capacity to lend; Enable the
Federal Government to formally recognise and account for its true
liabilities in line with the International Public Sector Accounting
Standards (IPSAS).”

Some of DMO’s major plans in 2019 are to undertake more of
project-tied borrowing and access more external borrowing from
Concessional Sources. Furthermore, the DMO announced plans to issue
30-year Federal Government of Nigeria Bonds (FGN Bonds) for the
first time.

“The issuance of the Bond Oniha said: “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.”

Another area of focus in 2019 will be the management of Risks
associated with the Debt Stock to mitigate Debt Service Costs.”

In 2019, Budget Deficit was put at N1. 859 trillion but new
borrowings, if passed by the National Assembly have been put at
N1.649 trillion.

By this development, the percentage of Deficit to be Funded by
Borrowing in 2019 will 88.7 0%.

According to Oniha: “the New Borrowing in 2019 (subject to NASS
Approval) will be a 50-50 split for Domestic and External both at
N824 billion. The domestic borrowing component also known as FGN
Bonds, will sourced from Sukuk, Green Bond and Savings Bond while
the external (N824 billion) will be largely Concessional, Cheaper
and will help reduce Debt Service Cost. Longer-term funds for
infrastructure, used to create space for private sector borrowing
and Increase External Reserves

Patience Oniha also explained: “Proceeds of the USD500 million
Eurobond raised in November 2017 and USD2.5 Billion were used to
redeem the N198.032 billion of Nigerian Treasury Bills (NTBs) that
matured in December 2017.

“Also, USD2.5 billion Eurobond Proceeds (February 2018) were
used to redeem N729.95 Billion Nigerian Treasury Bill (NTB) in
2018.”

Kidnappers of Buhari’s Prayer Warrior
Nabbed
…. ‘We fought, killed one another after releasing Sheikh’— Gang
Leader Confesses

A notorious kidnapper, Lawal Ibrahim and members of his gang who
abducted Sheikh Ahmad Sulaiman and other clerics in Katsina State
have been arrested by security operatives while trying to flee the
den.

While being interrogated by security operatives, in a video
obtained by PRNigeria, the gang leader said some members of the
terror group brutally attacked and killed one another after
releasing the popular Quranic reciter and other Islamic
clerics.

Ibrahim, a middle-aged man and another accomplice who gave his
name as Isiyah, said ten of them were involved in the abduction of
the renowned Islamic scholar who supported and offered prayers at
political rallies for the re-election bid of President Muhammadu
Buhari in the build-up to the 2019 general elections.

Ibrahim disclosed that he never met or physically saw one Alhaji
Dogo Nalade who he claimed was their ringleader but said Nalade
regularly communicate with them via phone from an undisclosed
hideout.

The notorious kidnapper said they were arrested while trying to
flee their abduction’s den to Obajana town in Kogi State, in search
of legitimate unskilled jobs after quitting their ‘heinous’ trade
of kidnapping.

He disclosed that the weapons they used for operations were
supplied by persons who asked them to use it for their ‘obnoxious
profession’ and thereafter request for commissions.

“Mallam’s release is somehow mysterious. This is because despite
our unyielding resolve to collect ransom from his people and
well-wishers, we later decided to allow him go.

“However, a violent fight broke out between members of our gang.
Two gang-members were initially killed in the forest by some of our
colleagues. Though, the two of us that were arrested luckily fled
the forest to avoid been killed, seven other kidnappers among us
were shot and killed by our aggrieved members,” he added.

Sheikh Ahmed Sulaiman and others regained freedom from
kidnappers on March 27, 2019 after spending about two weeks in the
kidnappers’ den.

The cleric and other victims were kidnapped along Sheme to
Kankara road in Katsina, on their way back to Kano State, after
attending a religious activity in Kebbi State.

By PRNigeria