Tuesday, November 30

Tag: Debt Management Office

Domestic debt: Ogun govt borrows another N2.84bn
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Domestic debt: Ogun govt borrows another N2.84bn

The Governor Dapo Abiodun-led Ogun State Government borrowed another N2.8billion between January and March, 2021, DAILY POST has gathered. This was contained in the latest report published last week by the Debt Management Office (DMO). The report is coming a few months after the DMO revealed that the domestic debt profile of the Gateway State has increased by N58 billion in 18 months, from June 2019 to December 2020. DAILY POST reports that the domestic debt of Ogun stood at N95,174,172,678.30 as of June 30, 2019. In December 2020, the domestic debt stock of the state rose to N153,490,666,025.15, indicating that a total of N58,316,493,347 had been borrowed by the Abiodun government. But, Gov Abiodun, in a swift response, denied borrowing the N58,316,493,347, saying it was an...
Nigeria’s Debt Stock To Hit ₦34 Trillion With New Loans
Politics

Nigeria’s Debt Stock To Hit ₦34 Trillion With New Loans

The total debt stock for Nigeria could rise from N33 trillion to N34tr soon as the National Assembly approves another N1.1tr external loan request for the federal government. The House of Representatives yesterday approved the external loan of $1.5 billion (about N571.5bn) and €995 million (about N528.4bn) for the federal government while the Senate had approved the request last week. The Debt Management Office (DMO) had in March 2021 placed Nigeria’s Public debt at N32.915tr as of December 31, 2020. This included the debt stock of the federal and state governments as well as the Federal Capital Territory (FCT). “Total Public Debt to Gross Domestic Product as at December 31, 2020 was 21.61 percent, which is within Nigeria’s new limit of 40 percent.” According to the recomme...
Ogun State Paid ₦20 Billion Out Of its Debt In 2020 – Dapo Okubadejo
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Ogun State Paid ₦20 Billion Out Of its Debt In 2020 – Dapo Okubadejo

The Ogun State Commissioner for Finance, Dapo Okubadejo, has said the state government paid over N20 billion out of its debt in the year 2020. This, according to him, was the reason the debt of Ogun State stood at N153billion as of December 2020. Okubadejo made this revelation in an exclusive chat with DAILY POST, when he was contacted to make clarifications on the state finances as published by the Debt Management Office (DMO). The Commissioner who declined comments on how much had been borrowed by the government of Governor Dapo Abiodun, told our correspondent that “N106.7 billion was the domestic debt as at May 2019,” saying “this has been written before, several times.” But, our correspondent called the attention of Okubadejo to the fact that the DMO report says the Ogu...
FG To Auction ₦150 Billion Bonds In April – Debt Management Office
Politics

FG To Auction ₦150 Billion Bonds In April – Debt Management Office

The Debt Management Office on Wednesday disclosed that the Federal Government would offer N150bn bonds for subscription in April. A circular by the DMO on its website showed that the breakdown of bonds comprised of three bonds worth N50bn each. They are 10-year reopening bond to be offered at the rate of 16.2884 per cent and to mature in March 2027; a 15- year reopening bond to be offered at 12.5 per cent and mature in March 2035; and the third and longest bond which is a 25-yeaer reopening bond to be offered at 9.8 per cent and mature in July 2045. According to the DMO, the bonds which would be auctioned on April 21, 2021 have a settlement date of April 23, 2021. The DMO had earlier disclosed that the Federal Government’s bonds for March worth N150bn which were auctioned wer...
Nigeria’s Rising Debt Servicing Is An Economic Threat – SEC
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Nigeria’s Rising Debt Servicing Is An Economic Threat – SEC

The increasing debt service of Nigeria is an economic threat to the country, the Securities and Exchange Commission declared on Thursday. But this might not stop the Federal Government from borrowing to fund the 2021 budget, as the Minister of Finance, Budget and National Planning, Zainab Ahmed, insisted that government had to borrow. In January, The PUNCH reported that Nigeria spent almost N2tn on debt servicing payments from January to September 2020, based on data obtained from the Debt Management Office. At the 5th Annual Budget Seminar of the Securities and Exchange Commission with the theme, “Financing Nigeria’s budget and infrastructure deficits through the capital market,” the SEC also stated that shocks to commodities were affecting revenue generation. It disclosed...
Reps Demand Documents On ₦2.2 Trillion Foreign, Domestic Debts Utilisation
Politics

Reps Demand Documents On ₦2.2 Trillion Foreign, Domestic Debts Utilisation

The House of Representatives Committee on Public Accounts has asked the Office of the Accountant-General of the Federation to forward the financial statement on the utilisation of the N2.2tn revenue accruing from foreign and domestic debts raised by Debt Management Office. Chairman of the committee, Oluwole Oke, made the request based on a query issued against the DMO for the 2018 financial year. Oke said apart from details of the utilisation of the fund, the committee also wanted to know the reason it reflected in the DMO’s financial statement. He asked why the office could not account for the money that was appropriated for, which also did not appear in the books of the OAGF. The lawmaker said, “We should hold you liable to the actual sum released to you. If it is in the ...
Nigeria’s Debt Hits N31 Trillion – Debt Management Office
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Nigeria’s Debt Hits N31 Trillion – Debt Management Office

The Debt Management Office on Wednesday released Nigeria’s total public debt stock as of June 30, 2020, and put the country’s entire debt at N31trn, indicating an increase of N2.38trn within a space of three months. Nigeria’s total public debt stock includes the debt stock of the Federal Government, the 36 states, and the Federal Capital Territory. Just as the country’s public debt stock, the DMO also released reports on Nigeria’s Actual External Debt Service Payments in Second Quarter, 2020, as well as Nigeria’s External Debt Stock as of June 30, 2020. For the country’s public debt stock as of June 30, 2020, the DMO said, “The data shows that in naira terms, the total public debt stock which comprises the debt stock of the Federal Government, the 36 state governments and the FCT ...
N1.08bn Corruption Scandal Hits Debt Management Office
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N1.08bn Corruption Scandal Hits Debt Management Office

The Debt Management Office, DMO is currently enmeshed in corruption scandal, Saturday Vanguard can report. Money amounting to N1.08 billion is alleged to be lost from 2017 till date, thereby raising corruption cases the country is battling. It was learnt that the large-scale financial wrongdoings in the office would likely draw the attention of anti-graft agency, the Economic and Financial Crimes Commission. The corruption is allegedly being perpetrated through various means ranging from awards of contracts, operating on temporary files, unauthorized overseas trips, organization of fictitious events, production of fake transport receipts and destruction of official documents. Chronicle of frauds In December, 2017, the office requested the then Minister of Finance, Kemi Ade...
Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria
Politics

Loan Default: DMO Says China Won’t Take Possession Of Projects In Nigeria

Nigeria has said there will never be a situation where China will have to take possession of the projects financed with its loans. The Debt Management Office (DMO), while reacting to reports that China may take over projects financed with its loans secured by Nigeria, assured that the federal government has made adequate plans for the repayment of the debt. According to the DMO, as at March 31, 2020, the total borrowing from China stood at $3.121 billion at an interest rate of 2.50 percent per annum, with a 20-year maturity and a 7-year moratorium. The agency said the low interest rate reduces the interest cost to government, while the long tenor enables the repayment of the principal sum of the concessional loans over many years. “These two benefits make the provisions for...
Nigeria Considers $2.8 Billion External Loan For 2020 Budget
Politics

Nigeria Considers $2.8 Billion External Loan For 2020 Budget

The Debt Management Office (DMO) on Friday said Nigerian government was considering taking loan from foreign sources to fund the 2020 budget signed into law by President Muhammadu Buhari a month ago. On December 17, 2019, Mr Buhari, who travelled to the United Kingdom today for an investment summit starting next Monday, signed the 2020 Appropriation Bill into law. His government proposed to spend N10.33 trillion in this fiscal year, which kicked off on January 1. In a chat with newsmen today, Director General of DMO, Ms Patience Oniha, said the President Buhari administration was planning new borrowings of N1.60 trillion, with N850 billon (about $2.8 billion at an exchange rate of N306/$1) and N744.99 billion for external and domestic loans respectively. ALSO READ Ogun Unveils 1...
Nigeria To Borrow N510 Billion Via Bond Sale In Q1 2020
Politics

Nigeria To Borrow N510 Billion Via Bond Sale In Q1 2020

The Debt Management Office (DMO) has said it would approach the local debt market to auction bonds belonging to the Federal Government of Nigeria worth between N420 billion and N510 billion in the first quarter of 2020. The debt office, in a circular issued on Monday showing the bond sale programme for Q1 2020, said the instruments would be offered in three different maturities; 5-year, 10-year and 30-year. In the calendar sighted by Business Post on Wednesday, the DMO said the FGN bond auctions will hold on January 22, February 19 and March 25, 2020. In the first exercise scheduled for next Wednesday, the debt office plans to sell from N45 to N55 billion worth of the 5-year paper at 12.75 percent, another N45 to N55 billion worth of the 10-year paper at 14.55 percent, and N50...
Federal Government  offers 2 savings bonds at 10.48%, 11.48%
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Federal Government offers 2 savings bonds at 10.48%, 11.48%

The Federal Government on Monday offered for a subscription a two-year savings bond at 10.48 percent and a three-year savings bond at 11.48 percent, the Debt Management Office (DMO) has said. According to the offering circular on the DMO website, the two-year bond will be due in July 2020 while the three-year bond will be due in July 2021. It, however, did not state how much was offered for the bonds, but stated 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 DMO said the bonds were 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...
APC Governor Blasts Buhari’s Minister For Accusing Him Of Corruption
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APC Governor Blasts Buhari’s Minister For Accusing Him Of Corruption

The Plateau State Government has replied the Minister of Youth and Sports Development, Solomon Dalung, for accusing the state governor, Simon Lalong of mismanaging over $2 billion loan.   According to the minister, the APC administration in Plateau was not prudent in managing resources.   “Where is the $2 billion loan collected from African Development Bank for potatoes processing factory payable in 25 years? Where is the factory located? Or where is the money kept and whose account? Why did the state government keep the issue of the loan secret? What is happening to LG funds? What is happening to 5 per cent meant for the traditional council?” the minister said in a statement he personally signed in response to an earlier verbal attack on him by the APC chairman in th...
Why Nigeria Must Stop Borrowing To Fund Budget – Senate Committee
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Why Nigeria Must Stop Borrowing To Fund Budget – Senate Committee

Nigeria needs to lower its debt profile in order to make financial resources available for priority projects, the Senate committee on Local and Foreign Debts has posited. During a courtesy visit to the Vice President, Yemi Osinbajo, on Monday, Chairman of the committee, Shehu Sani, said the country’s borrowing which was heightened during the period of recession, needs to be cut. The lawmaker said the borrowings that followed the period of recession was justified as the country needed to invest massively in infrastructure, agriculture, mining and manufacturing, with multiplier implication of increasing employment and reflating the economy. He, however, maintained the need to check excessive borrowing. “The country took up more borrowings, and gradually Nigeria’s total debt stock...
Nigeria Is Ready For Business – CBN Chief Godwin Emefiele Tells Investors
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Nigeria Is Ready For Business – CBN Chief Godwin Emefiele Tells Investors

The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has urged investors to come over to Nigeria, declaring that the nation’s Return on Investment (ROI) in all sectors of the economy are among the best in the world. Addressing an elite gathering of capital and money market players, investment bankers, treasurers and other fund managers at the London Stock Exchange over the weekend, Emefiele’s message was summed up in one key sentence: “Nigeria is ready for business” At a forum organised by the London Stock Exchange, in collaboration with the Nigerian Stock Exchange, Emefiele, who drew intermittent applause from the gathering, told the story of how Nigeria emerged from what was its worst recession in decades, revealing the ongoing reforms and the huge opportunities availa...
Nigeria Sells Five And 10-Year Bond At Flat Rate Of 15% – DMO
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Nigeria Sells Five And 10-Year Bond At Flat Rate Of 15% – DMO

Nigeria has sold a five and 10-year debt at a flat rate of 15 percent at an auction on Wednesday to curtail borrowing costs as inflation declines, traders said on Thursday. The Debt Management Office (DMO) raised a total of 121.13 billion naira, more than the 100 billion naira it wanted to raise. The DMO sold three billion naira of the 2021 paper and 97 billion naira of the 2027 paper at 15 percent. It allotted 21.13 billion naira of the 10-year debt on a non-competitive basis. Borrowing costs for the government have fallen from as high as 18 percent a few months ago as inflation has slowed, helping the state raise money to cover a gap in its budget. It expects a budget deficit of about 2.36 trillion naira this year, with more than half the deficit to be funded through local bo...
It May Take 30 Years To Repay Proposed $5.5bn Loan – Kemi Adeosun
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It May Take 30 Years To Repay Proposed $5.5bn Loan – Kemi Adeosun

Kemi Adeosun, minister of finance, says it might take five to 30 years to repay the $5.5billion loan that President Muhammadu Buhari is seeking. Last week Tuesday, Buhari approached the national assembly to approve the money, explaining that $3 billion would be used to service domestic debts while $2.5 billion would be for the funding of the 2017 budget. Accusing Buhai of mortgaging the future of Nigerians, the Peoples Democratic Party (PDP) asked the national assembly yo reject the request. But speaking when she appeared before the senate committee on local and foreign debts, Adeosun who was represented by Patience Oniha, director-general of the Debt Management Office (DMO), said long term-loans, such as this one, would be used to finance capital projects that had long-term benef...
Foreign Debt Payment To Gulp $11.62bn In 10 Years – DMO
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Foreign Debt Payment To Gulp $11.62bn In 10 Years – DMO

Nigeria may have to grapple with the payment of $11.62bn in foreign debt in the next 10 years, a projection of the Debt Management Office has shown. The debt service payment over the 10-year period, 2017 to 2026, includes some principals that will fall due for redemption as well as interests that would have accumulated and redeemed on an annual basis. Accordingly, 2018, 2021 and 2023 will see Nigeria parting with more than $1bn each year because some Eurobonds issued by the Federal Government will fall due for redemption then. In 2018, the country will be parting with $1.19bn. This includes a principal redemption of $716.09m and interest payment of $475.8m. The projection sees Nigeria paying $1.58bn in 2021. This includes principal redemption of $1.12bn and interest payment of ...
More Eurobonds To Be Released In Late 2017 – DMO Chief
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More Eurobonds To Be Released In Late 2017 – DMO Chief

Patience Oniha, director general of the Debt Management Office (DMO), says the federal government has plans to release more Eurobonds by the fourth quarter of 2017. Oniha made this known while speaking on the N100 billion Sukuk in an interview with Channels Television on Monday. “On what the DMO is looking at to bring down debt service, one part of it is what has been running already which is trying to increase the share of external debt because what we get from that side is an extended tenor and a lower cost of borrowing so that strategy is ongoing and we expect to be in the market again in the fourth quarter of this year with more Eurobond or a Eurobond and a diaspora bond, whichever works in the best interest of Nigeria. “Where we are is that we are still issuing long dated bon...
FGN Bond Records N129.16bn Subscription In July 2017 – DMO
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FGN Bond Records N129.16bn Subscription In July 2017 – DMO

The federal government bond which was auctioned on July 12, 2017 has recorded a successful subscription of N9.10 billion for the five year tenor, N55.31 billion for ten years and N64.75 billion for twenty years respectively. The auction attracted interest rates of 14.50 per cent, 16.2884 per cent and 16.2499 per cent meant to mature on July 15, 2021, March 17, 2027 and April 18, 2037 respectively. According to the data culled from the Debt Management Office website, N3.90 billion was allotted for the five year tenor, ten years tenor attracted N47.01 billion while N55.05 billion was allotted to the twenty years tenor. 13.386 per cent while the three year tenor had 437 successful subscriptions at the rate of 14.386 per cent. The bond which is expected to mature on July 12, 2019 had ...
Borrowing May Force Economy To Another Negative Growth – Experts
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Borrowing May Force Economy To Another Negative Growth – Experts

For borrowing and offering attractive interest rates to lenders, the Federal Government is unintentionally denying funds to industries and businesses, that require money to invest, hire more people and create growth. Experts say that when the government borrows, it crowds out the private sector and probably use bulk of the money to pay salaries, which does not create economic growth. They explained that the more naira that comes into the system, the greater the need to mop up to stop inflation and in the process of trying to mop up, inflation must be below the cost of funds and the cost of funds becomes higher in such a way that industries cannot afford to borrow with the exorbitant interest rates that banks charge. According to a financial expert, and Chief Financial Officer Ster...
Paris Club Refund: NGF Resolves To Offset Outstanding Consultants’ Fees
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Paris Club Refund: NGF Resolves To Offset Outstanding Consultants’ Fees

The Nigerian Governors’ Forum (NGF) has resolved to offset all outstanding fees owed consultants in the payment of the Paris-London Club loan refunds to the states. The consultants to be paid include all those that were engaged by previous administrations in various states. This decision was reached in Abuja at a meeting of the Legal Committee of Nigerian Governors’ Forum held at Plateau Government Lodge. The meeting was chaired by Governor Rotimi Akeredolu of Ondo State – who alongside Governors Nyesom Wike (Rivers), Aminu Tambuwal (Sokoto), Simon Lalong (Plateau), Seriake Dickson (Bayelsa), Ibrahim Hassan Dankwambo (Gombe) and Mohammed Abubakar (Bauchi) were mandated to review and provide solution to the demands by consultants on the refunds to states. A source close to the g...
Nigeria’s Foreign, Local Debt Hits N19.16 Trillion
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Nigeria’s Foreign, Local Debt Hits N19.16 Trillion

Nigeria’s total debts -foreign and local – have risen to N19.16 trillion. According to the the Debt Management Office, DMO, the nation’s indebtedness to creditors – local and foreign – rose from the N17.36 trillion recorded at the end of December 2016, representing an increase of N1.8 trillion. The DMO said that at the end of March 2015, the country’s total debt stood at N12.06 trillion, representing an increase of N7.1 trillion in two years. According to data released by the DMO, the Nigerian government’s domestic debt stood at N11. 97 trillion, as against N8.51 trillion recorded in 2015. This represents a domestic borrowing record of N3.46 trillion, representing 40.71 per cent. On the other hand, Nigeria’s external debt for the federal and state governments rose from $9.46...
2017 Budget Faces Fresh Hurdle At National Assembly
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2017 Budget Faces Fresh Hurdle At National Assembly

Legislators have delayed forwarding the 2017 budget to the presidency for assent after allegations of illegal alterations were raised by some members yesterday, Daily Trust has learnt. The two chambers of National Assembly passed the budget Thursday after several months of delay. However, it was gathered that the allegations are already creating ripples among some senators. Many of them are said to be calling for the document to be properly scrutinised and the illegal insertions weeded out before it is presented to the presidency for assent. Accusing fingers are being pointed at the Senate works committee as being responsible for the alterations lately discovered in the budget. The committee is headed by Kabiru Gaya (APC, Kano) who is said to be outside the country at the mo...
Nigeria Prices $500m Bond At 7.5% Yield
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Nigeria Prices $500m Bond At 7.5% Yield

The federal government yesterday announced that it has priced its offering of $500 million aggregate principal amount of notes at a yield of 7.5% under its $1.5 billion (increased from US$1 billion) Global Medium Term Note Programme, which will be consolidated and form a single series with the nation existing $1billion 7.875 per cent per annum. It would be recalled that the Presidency recently got the approval of the National Assembly to raise additional $500 million Eurobond from the international capital market. The bonds which were issued on 16 February 2017 will mature on 16 February 2032 and repayable by way of bullet repayment of the principal together with the original ones of $1 billion. The proceeds of the Notes would be used to fund capital expenditures in the 2016 budget, acco...
Fashola Lists New Economy, Infrastructure Budget Funds As Benefits
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Fashola Lists New Economy, Infrastructure Budget Funds As Benefits

FEDERAL MINISTRY OF POWER, WORKS AND HOUSING Office of the Special Adviser on Communications Headquarter, Mabushi P.M.B. 111, Garki - Abuja, Nigeria PRESS RELEASE FASHOLA LISTS NEW ECONOMY, INFRASTRUCTURE BUDGET FUNDS AS BENEFITS OF PROPOSED SOVEREIGN GREEN BONDS · Solar Unit Distribution Programme (SUDIP) will provide up to 12MWs, 6,000 jobs and impact at least 60,000 persons, he says · Advocates that programme be taken to the street level to make the people understand and connect with it · A new economy is possible and people must understand that this is that new economy - Minister As the nation plans to inaugurate the first African Sovereign Green Bond to address climate change and sustainable environment , the Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, ...
Reps Reject N305/Dollar Exchange Rate For Budget
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Reps Reject N305/Dollar Exchange Rate For Budget

The House of Representatives yesterday rejected the Federal Government’s exchange rate of N305/dollar in this year’s budget, saying it would engender huge corruption, with the almost N500/dollar at the parallel market. Members of the Green Chamber also queried the Executive on the domestic borrowing plan of the President Muhammadu Buhari administration, saying it will stifle funds that could have been made available to the real sector and small businesses to grow the economy and move the country out of recession. Of the N2.321 trillion borrowing plan projected in the budget, N1.253 trillion is to be sourced from the domestic market. The lawmakers, who spoke during an interactive session with members of the Executive with the committees on Finance, Appropriation, Aid Loans & De...
Confusion Over Buhari’s $30bn Loan Request
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Confusion Over Buhari’s $30bn Loan Request

There is confusion over President Muhammadu Buhari’s $29.9bn loan request, which was rejected by the Senate on November 1, 2016. Buhari had, in a letter to both chambers of the National Assembly, titled ‘Request for Approval of Federal Government 2016-2018 External Borrowing (Rolling) Plan, asked the legislature to approve his administration’s external borrowing plan of $29.960bn. The loan will cover the funding of projects between 2016 and 2018. The Senate had, on November 1, 2016, rejected the loan request, asking the executive to provide further details on it. The budget has a huge deficit of N2.36tn (or 2.18 per cent of Gross Domestic Product), a figure the President said would be financed through borrowing. But on Sunday, there was confusion on the status of the loan re...

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