FG incurs additional N1.26trn domestic debt in one year

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Nigeria’s Federal government has within the past one year, increased its domestic debt profile by N1.26 trillion, bringing the total to N13.41 trillion as of June 30, 2019.

This was disclosed in the Central Bank of Nigeria’s half year report on Federal Government’s domestic debt.

According to the report, Nigeria’s domestic debt rose 10.38 percent to N13.41 trillion in June 2019, representing an addition of N1.26 trillion from the N12.15 trillion from the corresponding period in 2019.

“The total domestic debt outstanding at the end of June 2019 stood at N13.41tn, representing an increase of N1.26tn or 10.38 per cent, over N12.15tn in the corresponding period of 2018,” the report said.

According to the report, the debt stock during the review period comprised the FG’s bonds worth N9.69 trillion or 72.26 percent, Nigerian Treasury Bills worth N2.65tn or 19.77 percent and FRN Treasury Bonds of N125.99bn or 0.94 percent.

Others are FGN promissory notes of N707.76bn or 5.28 per cent, FGN Sukuk worth N200bn or 1.49 per cent, FGN green bonds worth N25.69bn or 0.19 per cent and FGN savings bonds of N10.43bn or 0.08 percent.

The apex bank stated, however, that the FGN domestic debt service was N800.73billon at the end of June 2019, representing a decrease of 15.00 percent when compared to N941.99bn at end-June 2018.

The decrease was attributed to the fall in yields on the securities issued in the markets.

A breakdown of the cost showed that interest expense on NTBs stood at N166.63bn or 20.81 per cent, coupon payments on FGN bonds, FGN savings bonds and FGN green bonds accounted for N609.84bn or 76.16 per cent, N0.66bn or 0.08 per cent and N0.72bn or 0.09 per cent respectively.

A rental payment on FGN Sukuk was N16.02bn or 2.00 per cent, while interest paid on FRN treasury bonds was N6.87bn or 0.86 per cent

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