The Debt Management Office quoted 24.4 Trillion Naira as the nation’s total debt now. There is a relieve as the nation’s total debt reduced against the escalation in 2018, the debt stock escalated in 2028 to 24.387 trillion Naira ($79.437 billion), about 2.7 trillion Naira or 9.1 percent higher than the 21.725 trillion Naira recorded at the end of 2017 though, the huge addition was recorded in the forth quarter of 2018 which came with 1.96 trillion Naira or 8.03 percent increase against the 22.428 trillion Naira recorded at the end of September 2018.
Debt Management Office, DMO. Ms. patience Oniha, described while briefing news men on the nation’s debt profile in Abuja. She said, domestic debt accounted for 68.18 percent of the figure which is consisted of debt owed by both the federal and state government.
The 24.387 Trillion Naira debt stock as at the end of 2018 represented 2, 661 trillion or 1225 percent increase above the figure of December 31St 2017 which stood at 21. 725 trillion Naira.
The DMO said the CBN official exchange rate of US$1/306Naira as at December 31St and US$1/307 Naira as at December 31St 2018 we’re used for the conversions of exchange debt stock in Naira.
The new borrowing since the current administration came into power were
2015 =1,457 trillion Naira
2016= not available
2017= 2.321 trillion Naira
2018= 1,643 trillion Naira
And 2019 (proposed) 1,649 trillion Naira
An analysis of the presentation by the DG indicated that the Fed. Govt. debt stock was 17.117 trillion as at December 2017 but increase to 19.234 trillion Naira at the end of last year, representing an increase of 543.65 or 11.50 percent.
On the promissory notes, she said the Fed. Executive Council, EFCC approved the establishment of a promissory note programme for the inherited Local Debt and other contractual obligation of the Fed. Govt.
The programme which has been estimated to be at 3.4 trillion would also be used to pay judgement debt and export grants.
On the benefits, Ms. Oniha said ” it will provide stimulus to the economic and unlock investment across a number of sectors currently having liquidity issues. It will also have positive impact on the non-performing loan ratios of banks which will in turn increase the banks’ capacity to lend and enable the Fed. Govt. to formally recognise and account for it’s true liabilities in line with the international public sector accounting standard, IPSAS.