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FG to borrow N1.6trl to fund 2020 budget

The Federal Government is to borrow N1.6trl (one point six trillion naira) to fund the 2020 budget.

The Director General of the Debt Management Office, DMO, Ms. Patience Oniha made this known at a News briefing on its performance for 2019 and projection for 2020.

The funds would comprise N850bn (eight hundred and fifty billion naira) from external sources and N744bn (seven hundred and forty four billion naira) from domestic sources, including FGN Bonds, Sukuk, FGN savings Bonds and Green Bonds.

Ms. Oniha said as at September 2019, the Total Public Debt, comprising those of the Federal Government, thirty six states and the Federal Capital Territory stood at N26.2trl (twenty six point two trillion naira), representing 18.4% of Gross Domestic Product.

She said while the nation’s debt to GDP was within recommended limits, there was need to grow revenues to address the Debt service to revenue ratio which currently stands at fifty one percent.

The Director General said the DMO for the first time issued a thirty-year FGN Bond last year to meet the investment needs of long-term investors and support the development of the domestic financial markets in areas such as mortgages. 

She said the 30-year Bond also contributed to reducing the refinancing risks of the Public Debt Stock. 

Biodun Dare

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