Nigeria’s total debt rises to $63bn

The Debt Management Office on Monday disclosed that total debt for the federation rose to N19.15 trillion or $62.91 billion by the end of March 2017.

The disclosure came on day that Federal Government offered another two-year savings bond at 13.18 per cent and three-year savings bond at 14.18 per cent.

Total debt stock stood at N17.36 trillion by the end of December last year.

Details of the debt table published on DMO’s website revealed that external component of both Federal Government and states stood at N4,229,955.20 or $13.80 billion at the end of the first quarter, against $11.40 billion at the end of December 2016.

Domestic Debt Stock of Federal Government was N11,971,336.53 or $39,077.32 as at end of first quarter of this year while domestic debt of states as at the period under review was N2,958,517.43 or $9,985.16.

DMO then put the grand-total at N19,159,809.16 or $62,870.07.

The debt office however, explained that while external debt and FGN domestic debt figures were as at March 2017, domestic debt figures for 31 states were as at December 2016, except for Ogun State (December 2015), Akwa-Ibom and Rivers were as they stood by end of June 2016 and Jigawa and Katsina states were as a6t March 2016.

And in the offer circular for the fresh savings bond, DMO says the two-year bond will be due in June 2019, while the three-year bond falls due in June 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.

According to DMO, the bond is 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 what was accrued on their bank savings.