Nigeria’s cost of servicing debt grew by 37.04 per cent to N941.99 billion at the end of June 2018, compared to N687.37 billion in the corresponding period of 2017, according to the Central Bank of Nigeria (CBN).
The half year activity report released on Wednesday by the CBN revealed that total domestic debt outstanding at the end of June, 2018 stood at N12.2 trillion, representing an increase of N290.67 billion or 2.45 per cent, over N11.9 trillion in the corresponding period of 2017.
The debt stock during the review period comprised FGN Bonds worth N8.9 trillion or 73.47 per cent, Nigerian Treasury Bills (NTBs) worth N2.9 trillion or 24.31 per cent and FRN Treasury Bonds of N150.99 billion or 1.24 per cent.
Others included FGN Sukuk worth N100.00 billion or 0.8 per cent, FGN Green Bond N10.69 billion or 0.09 per cent and FGN Saving Bonds of N8.52 billion or 0.07 per cent.
The Debt Management Office (DMO) on Wednesday released its new strategic plan the expiration of the 3rd Strategic Plan (2013 – 2017).
The building blocks for the 4th Strategic Plan are: changing investor needs and higher investor expectations from the DMO on products and services; government’s prioritisation of the development of infrastructure which requires new and more creative ways of financing; and among others, the active and supportive role expected of the DMO under the ERGP, two of whose pillars are reducing the infrastructure gap and a private sector-led growth.
The Broad Objective of the 4th Strategic Plan is: to use Debt and Debt-related instruments to support Nigeria’s development goals, while ensuring that public debt is sustainable.
The Office noted the major challenges encountered in the implementation of the 3rd Strategic Plan to include the non-passage of DMO Amendment Act; inadequate funding for the implementation of some initiatives; low staff morale due to continued delays in the actualization of key human resource issues, such as remuneration and less than optimal posting of staff and; inability to properly manage certain categories of external stakeholders.