The money, he had said, was taken by the federal government from the apex bank and it is the balance accumulated for over 10 years… The outgoing administration of President Muhammadu Buhari will be leaving behind a debt of ₦77 trillion.
What DMO said: The Director General (DG) of the Debt Management Office (DMO), Ms Patience Oniha, projected that the Buhari administration will be passing on a total national debt fund of around ₦77 trillion in May.
The DMO helmsman who spoke at the “Public Presentation and Breakdown of the Highlights of the 2023 Appropriation Act” in Abuja on Wednesday, January 04, 2022, argued that if the National Assembly (NASS) approves the ‘securitisation’ of the ₦22.7 trillion Ways and Means debt secured from the CBN, the cost of servicing the loan would significantly reduce.
In her words: “The other area of the debt stock we are trying to highlight is to say, the debt stock is also growing from the issuance of promissory notes which are not true borrowing as such by the government.
“While the debt is growing because there is new borrowing, revenue is receiving significant attention.
“Like DMO always says, you can’t talk about debt without talking about revenue. We need the two to work together,” she said.
Breaking down the figures: According to emerging reports, the outstanding payments will be made up of ₦44.06 trillion total debt stock as of the third quarter of 2022; ₦22.7 trillion Ways and Means borrowed from the Central Bank of Nigeria (CBN); projected new borrowings of ₦10.57 captured in the 2023 budget; and issuance of promissory notes.
Meanwhile: Buhari has asked the National Assembly to reconsider its position on his request to pay an outstanding N22.7 trillion to the Central Bank of Nigeria (CBN).
Buhari’s request to NASS: The money, he had said, was taken by the federal government from the apex bank and it is the balance accumulated for over 10 years.
“Failure to grant the securitisation approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus three per cent and the negotiated interest rate of nine per cent and a 40-year repayment period on the securitised debt of the Ways and Means.”
What NASS said: The chamber was thrown into a rowdy session when some lawmakers kicked against the request described as unconstitutional.
The lawmakers demanded details of the expenditure, others wondered why the amount was taken without the notice and approval of the National Assembly.
About the loan from CBN: The Ways and Means are advances (or funds) from the Central Bank of Nigeria (CBN) to the federal government for emergency funding of delayed receipt of fiscal deficit.