ABUJA—DIRECTOR General of the Debt Management Office, DMO, Dr. Abraham Nwankwo, yesterday, put the nation’s local and foreign debts at $29 billion while the nation’s Gross Domestic Product, GDP, was fixed at between $178 billion and $179 billion.
Nwankwo who spoke at the News Agency of Nigeria, NAN, Forum in Abuja said: “As at now externally, we are owing $4.27 billion at the end of June 2010. Domestically, at the end of June 2010, Nigeria is owing N3.76 trillion. If you combine the two under one denominator in dollars, the total public debt as at the end of June 2010 is about $29 billion.”
Nwankwo said that 85 per cent of the external debt was from the concessionary window of the World Bank and the soft window of the African Development Bank, ADB, adding: “These are windows where the total finance charged of what you have borrowed is not more than 1.25 per cent per annum.”.
The director_general further explained that loans from the concessionary window had longer re_payment periods.
He condemned the brandishing of wrong figures on Nigeria’s debts, stressing that the DMO was the only agency allowed to comment on the volume of the debts.
Nwankwo noted: “The Debt Management Office is the only agency that can tell you how much Nigeria owes externally and domestically.”
While noting that the office had always funded the Federal Government’s fiscal deficits in line with approved Appropriation Acts, Nwankwo said the office had been able to effectively fund the government’s fiscal deficits on a “consistent, effective and efficient basis.”
The DMO boss said the fiscal deficit for every year was defined as part and parcel of the annual Appropriation Act, adding that it was not an issue that could be frivolously treated as assumed in some quarters.
He said: “The DMO does not fund deficits outside the Appropriation Act. The national budget for each year defines what we as a collective of people have decided to fund for the year in order to achieve the relevant growth, development and poverty reduction.”
Nwankwo also spoke on bonds, saying the DMO had made substantial progress in transforming and developing a sound domestic bond market. He said: “As you know up to 2002 or thereabouts the domestic market was dominated by short_time money. So any government or any individual who wanted to borrow from the market would not be able to access funds for beyond 12 months, maximum two years.
By John Abayomi
Nwankwo who spoke at the News Agency of Nigeria, NAN, Forum in Abuja said: “As at now externally, we are owing $4.27 billion at the end of June 2010. Domestically, at the end of June 2010, Nigeria is owing N3.76 trillion. If you combine the two under one denominator in dollars, the total public debt as at the end of June 2010 is about $29 billion.”
Nwankwo said that 85 per cent of the external debt was from the concessionary window of the World Bank and the soft window of the African Development Bank, ADB, adding: “These are windows where the total finance charged of what you have borrowed is not more than 1.25 per cent per annum.”.
The director_general further explained that loans from the concessionary window had longer re_payment periods.
He condemned the brandishing of wrong figures on Nigeria’s debts, stressing that the DMO was the only agency allowed to comment on the volume of the debts.
Nwankwo noted: “The Debt Management Office is the only agency that can tell you how much Nigeria owes externally and domestically.”
While noting that the office had always funded the Federal Government’s fiscal deficits in line with approved Appropriation Acts, Nwankwo said the office had been able to effectively fund the government’s fiscal deficits on a “consistent, effective and efficient basis.”
The DMO boss said the fiscal deficit for every year was defined as part and parcel of the annual Appropriation Act, adding that it was not an issue that could be frivolously treated as assumed in some quarters.
He said: “The DMO does not fund deficits outside the Appropriation Act. The national budget for each year defines what we as a collective of people have decided to fund for the year in order to achieve the relevant growth, development and poverty reduction.”
Nwankwo also spoke on bonds, saying the DMO had made substantial progress in transforming and developing a sound domestic bond market. He said: “As you know up to 2002 or thereabouts the domestic market was dominated by short_time money. So any government or any individual who wanted to borrow from the market would not be able to access funds for beyond 12 months, maximum two years.
By John Abayomi
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