Nigeria’s public debt stock for both the Federal Government
and the states as at June 30 stood at N19.63 trillion, a document by the Debt
Management Office (DMO) says...
The document obtained from the DMO website
Monday, according to NAN said the domestic debt of states stood at N3 trillion,
as the Federal Government spent N253.3 billion on domestic debt servicing in
the second quarter of 2017 (April to June). Giving a breakdown of what each
tier owed, it said the external debt stock of both tiers was N4.6 trillion
while the domestic debt stock of the Federal Government was N12 trillion. The
breakdown of each month’s allocation shows N87 billion was spent on debt servicing
in April, N73 billion in May and N75.2 billion in June. Domestic debt is the
amount of money raised by any government denominated in local currency and from
its own residents. It consists of two categories: Bank and Non-Bank borrowing.
Domestic loans are issued through government debt instruments such as Nigerian
Treasury Bills, Nigerian Treasury Certificates, Federal Government Development
Stocks, Treasury Bonds, Ways and Means Advances. In another development, the
Federal Government offered for subscription two-year savings bond at 13.81 per
cent and three-year savings bond at 14.81 per cent. According to the offer
circular derived from the DMO, the two-year bond will be due in September 2019
while the three-year bond will be due in September 2020. It, however, did not
state how much was offered but added that the maximum subscription was N50
million at N1,000 per unit, subject to minimum subscription of N5,000 and in
multiples of N1,000. The website said that the bond was fully backed by the
full faith and credit of the Federal Government, with quarterly coupon payments
to bondholders. The savings bond issuance is expected to help finance the
nation’s budget deficit. It is to also part of the Federal Government’s
programme targeted at the lower income earners to encourage savings and also
earn more income (interest), compared to their savings accounts with banks. The
circular also said that the offer would close on Friday.
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