Nigeria’s debt profile hits N25.7 tr, says DMO

Tony Akowe, Abuja

The Director General of the Debt Management Office (DMO), Patience Oniha, said on Friday that Nigeria’s total debt profile stood at about N25.7 trillion as at June 2019.

Speaking when she appeared before the House of Representatives Committee on Public Accounts, Oniha said the debt was owed by both federal and state governments as well as the Federal Capital Territory (FCT).

She said about 80 per cent of the total debt was owed by the federal government, saying “we call it the total public debt. Out of this total, the federal government is responsible for 80 per cent of the debt”

She said: “The nation’s external borrowing accounts for about 32 per cent of the total debt profile, while the balance of 68 per cent is domestic debt incurred by government”.

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According to her, the DMO as an agency of government began operations in 2000, following the country debt management problems which led to the debt relief by foreign debtors, adding that it was responsible for the management of public debts in the country on behalf of the Federal Government.

She said “If you look back several years, over 85 per cent of budget deficits are funded by borrowing which the DMO undertakes as approved by the Federal Executive Council and the National Assembly.

“We borrow from various sources, the multi laterals, the World Bank, Islamic Development Bank, the African Development Bank, China Exim and we also issue products in the international market.

“Locally, we are also very active in domestic borrowing; we issue treasury bills, Federal Government treasure bonds.”

The Director General told the lawmakers that apart from managing the nation’s debt, the DMO also serves as an advisory body for the Federal Government on debt management and put the nation’s debt at 25 per cent ratio to the GDP.

She explained that the agency does not receive any money borrowed from any source as such money is paid directly to the Central Bank of Nigeria (CBN) which ensures that the money is used for the purpose for which it is borrowed.

The Chairman of the committee, Hon Wole Oke (PDP-Osun), said it was important for parliament to have all relevant information on the nation’s debt profile documented.