Nigeria borrows N2.75tn in one year - DMO discloses

Nigeria borrows N2.75tn in one year - DMO discloses

- The DMO says it has been able to raise a total of N410bn from the domestic debt market for financing capital projects in the 2018 budget

- The agency faults the notion that there had been excessive borrowing since the present administration came into power in 2015

- President Muhammadu Buhari is yet to assent the electoral act amendment bill

Statistics from the Debt Management Office (DMO) have indicated that the debt owed by the federal government, state governments and the federal capital territory administration increased by N2.75tn between July 1, 2017, and June 30, 2018.

The director general of the DMO, Patience Oniha, during a briefing on Tuesday, August 14, told journalist that the country’s debt stood at N22.38tn as of June 30, 2018, The Punch reports.

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Data from the DMO showed that the rise in the debt profile over the one-year period was due to the $2.5bn Eurobond issued by the federal government in February, 2018.

Oniha stated that DMO had been able to raise a total of N410bn from the domestic debt market for financing capital projects in the 2018 budget.

She explained that the money was part of the N793bn that would be borrowed from the domestic market within the year.

The director general however, faulted that notion that there had been excessive borrowing since the present administration came into power in 2015.

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She stated that the government only borrowed after thorough examination and questioning by lawmakers.

“If government didn’t borrow so much in the last three years, it wouldn’t have been able to function as a government.

“The huge borrowing became necessary following the fall in revenue from the fall in the price of crude and the attendant devaluation of the naira from the use of the external reserve to defend the national currency," Oniha stated.

Meanwhile, the presidency has denied reports that the electoral act amendment bill passed by the National Assembly was rejected by President Muhammadu Buhari.

The senior special adviser to the president on National Assembly matters, Ita Enang, said the bill which was passed by the lawmakers on on July 24, and transmitted to President Buhari on August 3, is still awaiting the president’s assent.

Daily Trust reports that Enang said that media reports that the president rejected the bill were not true.

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Source: Naija.ng

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