FG’s domestic borrowing rises to N7.04tn, says DMO

The Federal Government borrowed N7.04 trillion domestically in 2023, based on information released on Monday by Patience Oniha, Director-General of the Debt Management Office. She added that this amount matched the FG’s domestic goal for the year.

Speaking to CNBC Africa outside of the talks being led by the African Development Institute of the African Development Bank in Abuja for the creation of the African Debt Managers Initiative Network, she disclosed this information.

“I’m happy to report that the new domestic borrowing in 2023 was N7.04 trillion, and that has been raised in full as of right now,” Oniha stated.

It has been raised, so I won’t have to explain how we did it. In contrast to the N3.5 trillion of the previous year. It indicates that there is debt in the market for us to raise capital.

She mentioned that banks, insurance firms, asset managers, fund managers, pension funds, and other organisations with expanding balance sheets were among the investors in the securities released.

“We still had an auction this week,” she continued. It only indicates that there is liquidity because subscription levels have been strong and rates have been relatively prudent relative to the monetary policy rate.

Nigeria’s overall public debt increased to N87.38 trillion as of the second quarter of 2023, as reported by the DMO.

“As of June 30, 2023, Nigeria’s total public debt stock was N87.38 trillion ($113.42 billion),” the statement stated. It includes the total debt of the 36 states, the Federal Capital Territory, and the Federal Government of Nigeria, both internal and external.

“The N22.712 trillion securitized FGN’s Ways and Means Advances was the major addition to the Public Debt Stock.”