Data from the debt office showed that the bulk of the debt was incurred by the government to fund capital projects in the period under review.
According to the head of the DMO, Patience Oniha the funds were borrowed to fund projects, to finance budget deficit and to refinance maturing obligations.
Oniha said that the domestic component of the debt accounted for 68.18 percent of the figure which consisted of debts owed by both the federal and state governments.
The new borrowings since the current administration came into power were: 2015, 1.457 trillion naira; 2016, not available; 2017, 2.32 trillion naira; 2018 1. 643 trillion naira; and 2019 (as proposed) 1.649 trillion naira.
An analysis of the presentation by the DMO chief put the federal government component of the debt stock at 19.23 trillion naira by December last year compared with 17.1219.23 trillion naira the previous year, representing an increase of 11.80 percent.
Oniha disclosed that the government has approved the floating of a Promissory Note Programme to settle inherited domestic debt and other contractual obligations of the federal government.
She disclosed that the total promissory note to be issued is estimated at 3.4 trillion naira and would also be used to pay judgment debt and export grants.
Oniha said the objectives of the government is to use the issuance of promissory notes to stimulate the economy 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 Federal Government to formally recognise and account for its true liabilities in line with the International Public Sector Accounting Standards (IPSAS).
The Notes, according to the DMO, will positively impact the economy because they will be sovereign instruments, negotiable and have liquid asset status.
She said by December last year, 331.12 billion naira promissory notes had been issued to oil marketers and state governments to off-set outstanding debt.
The new borrowings since the current administration came into power were: 2015, 1.457 trillion naira; 2016, not available; 2017, 2.32 trillion naira; 2018 1. 643 trillion naira; and 2019 (as proposed) 1.649 trillion naira.
An analysis of the presentation by the DMO chief put the federal government component of the debt stock at 19.23 trillion naira by December last year compared with 17.1219.23 trillion naira the previous year, representing an increase of 11.80 percent.
Oniha disclosed that the government has approved the floating of a Promissory Note Programme to settle inherited domestic debt and other contractual obligations of the federal government.
She disclosed that the total promissory note to be issued is estimated at 3.4 trillion naira and would also be used to pay judgment debt and export grants.
Oniha said the objectives of the government is to use the issuance of promissory notes to stimulate the economy 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 Federal Government to formally recognise and account for its true liabilities in line with the International Public Sector Accounting Standards (IPSAS).
The Notes, according to the DMO, will positively impact the economy because they will be sovereign instruments, negotiable and have liquid asset status.
She said by December last year, 331.12 billion naira promissory notes had been issued to oil marketers and state governments to off-set outstanding debt.
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