Everest Amaefule, Abuja

The Federal Government said on Tuesday that it borrowed N3.57tn between June 2015 and March 2017 to finance budget deficits.

The government said this in response to an enquiry by The PUNCH, which sought to know what use it had put the funds being borrowed in the last two years from both external and local sources.

The enquiry, which was addressed to the Minister of Finance, Mrs. Kemi Adeosun, under the Freedom of Information Act, sought to ascertain the specific projects that the borrowed funds were used to execute.

The minister, however, referred the enquiry to the Debt Management Office for response.

In its response, the DMO hinted that the domestic borrowing was not tied to any specific projects but warehoused in the Consolidated Revenue Fund Account with the Central Bank of Nigeria for funding budget deficit, while the foreign loans were tied to specific projects.

The response from the government signed by Director, Policy, Strategy and Risk Management Department, DMO, Mr. Joe Ugoala, read in part, “In the case of domestic borrowing, kindly be informed that funds raised through the issuance of FGN securities in the domestic capital market are remitted into a pool – the Consolidated Revenue Fund Account maintained in the Central Bank of Nigeria for the purpose of funding the appropriated budget deficit.


for the purpose of funding the appropriated budget deficit.

“It is important to note that these borrowings from both external and domestic sources are mainly used to fund development of infrastructure and human capital in the various sectors of the economy, as listed in the appropriation acts.”

Statistics obtained from the DMO showed that the Federal Government’s domestic component of the national debt rose from N8.39tn as of June 2015 to N11.97tn by March 2017. This means that the domestic debt of the Federal Government rose by N3.57tn within the period.

According to the 2016 Appropriation Act, the Federal Government budget deficit for 2016 amounted to N2.22tn, while the deficit for 2017 amounted to N2.36tn. For 2015, the budget deficit stood at N755bn or 0.79 per cent of the Gross Domestic Product.

On monthly basis, the Federal Government uses a number of instruments to borrow money from the debt market. These include FGN Bonds, the Nigerian treasury bills and the Nigerian treasury bonds. It recently added a new instrument to the pack, the FGN Savings Bond.

Of the Federal Government’s domestic debt of N11.97tn as of March 31, FGN Bonds accounted for N8.18tn or 68.31 per cent; Nigerian treasury bills accounted for N3.6tn or 30.08 per cent; Nigerian treasury bonds, N190.99bn or 1.6 per cent; while the FGN savings bond accounted for N2.07bn or 0.02 per cent.

The nation’s domestic debt stood at N19.16tn as of March 31, 2017.

As of March 31, 2015, the country’s total debt stood at N12.06tn. This means that within a period of two years, the nation’s debt stock had increased by 58.84 per cent.

Within the period of two years, the country’s external debt rose from $9.46bn to $13.81bn. This means that within the two-year period, the country’s external debt rose by $4.35bn or 45.98 per cent.

The external debt component, however, has been affected by exchange rate variations as the last two years have witnessed significant changes in foreign exchange rates.

According to the DMO, the official exchange rate of N306.35 to $1 was used in calculating the country’s external debt for March 31, 2017, while the official rate of N197 to $1 was used in determining the foreign debt for March 31, 2015.

The domestic debt component of the states stood at N2.96tn as of March 31, 2017, up from the figure of N1.69bn as of March 31, 2015.

This means that within the period of two years, the domestic debt of the states rose by N1.27tn or 75.15 per cent.

With drying revenues from oil and gas, the government in the last two years has increasingly depended on borrowing even to carry out routine responsibilities.

Although foreign debts are seen as cheaper than domestic debts, the government has increasingly depended on local debts as foreign donors place more stringent conditions on its path.


http://punchng.com/n3-57tn-borrowed-in-21-months-to-finance-budget-deficit-fg/

And the these liars tell Nigerians they use the recovered loot to fund the budget APC is so confused that they don't even know how to tell lies again.The foundations of hell will surely quiver when the corruption of the APC will be unearthed.I pukes at the thought of being in same country with these fellas.

See! What has this done to improve the economy of the country now? We were told something different entirely before this is another story again. I'm weak now

Watch as zombies will come here and say even america dey borrow. Apc and buhari are officially the worst thing ever to happen to nigeria.

Living on borrowed fund, too bad.

The senseless and utterly confused apc people.

Government without direction.

hisgrace090:
Living on borrowed fund, too bad.

Too bad.

Instead they suppose to borrow money to fix the economy.

APC is a curse.

Well, it is to be expected.

As usual, in a resource dependent nation like Naija, when the price of what you are selling starts falling, the revenue to the treasury starts falling.You end up with a deficit in the budget....and as a result...you have to BORROW to make up for the shortfall.

And before you chant 'What about the recovered loot'...yes I know APC did tell us that the loot would be used for the budget. But.1) Since the loot is still the subject of court cases, we cannot use it till cases closed and 2) It isn't enough anyway.

Let me throw you some figures now to show you how bad off we are

1.We need 5 trillion nairas for our universities now.

2.We need $100bn annually in extra spending to get light 24/7.

And as I speak, Nigeria budget is less than N10 trillion.

The only way we can end this mess is by taking our resources, manufacturing finished goods from them, and selling them for a profit.

After all....one African country earned $2bn from selling cocoa. One Western company bought part of that cocoa and made Chocolate...and made a profit of $17bn.

You see our problem?....and why we cannot keep on relying on just selling raw materials...whose prices jump up and down.

Our government is clueless. Adeosun is a puppet that's all

it is well these looters

that woman left huge debt in Ogun, he is doing same at the federal level.

9jakohai:
Well, it is to be expected.

As usual, in a resource dependent nation like Naija, when the price of what you are selling starts falling, the revenue to the treasury starts falling.You end up with a deficit in the budget....and as a result...you have to BORROW to make up for the shortfall.

And before you chant 'What about the recovered loot'...yes I know APC did tell us that the loot would be used for the budget. But.1) Since the loot is still the subject of court cases, we cannot use it till cases closed and 2) It isn't enough anyway.

Let me throw you some figures now to show you how bad off we are

1.We need 5 trillion nairas for our universities now.

2.We need $100bn annually in extra spending to get light 24/7.

And as I speak, Nigeria budget is less than N10 trillion.

The only way we can end this mess is by taking our resources, manufacturing finished goods from them, and selling them for a profit.

After all....one African country earned $2bn from selling cocoa. One Western company bought part of that cocoa and made Chocolate...and made a profit of $17bn.

You see our problem?....and why we cannot keep on relying on just selling raw materials...whose prices jump up and down.

The onlh sensible comment made so far in this thread.

The remaining comments largely by fools who claim beerfraud and are interested in zoo economics and wailing zombies who are yet to get over electoral loss induced depression ELID.

It takes only derelict imbec11 to claim that APC said it will entirely fund the budgdt with looted funds. It said recovered funds will be used in funding part of the budget and a specific sum was attributed to how much clearly less than a trillion naira. Unfortunately the two sickos of nairaland ipob animals and wailing zombie with their lose morals support stealing and looting which encourages thieves to steal and defend their loot through legal means.

vedaxcool:


The onlh sensible comment made so far in this thread.

The remaining comments largely by fools who claim beerfraud and are interested in zoo economics and wailing zombies who are yet to get over electoral loss induced depression ELID.

It takes only derelict imbec11 to claim that APC said it will entirely fund the budgdt with looted funds. It said recovered funds will be used in funding part of the budget and a specific sum was attributed to how much clearly less than a trillion naira. Unfortunately the two sickos of nairaland ipob animals and wailing zombie with their lose morals support stealing and looting which encourages thieves to steal and defend their loot through legal means.

you quoted a sensible comment only to make senseless comments under it. I know how hard defending a failed government can be but try and quote the beerfruds who are waiting to devour your zombie as.s and leave the sensible comments for those who have something sensible to comment

[s]

Ogbuefi2020:

you quoted a sensible comment only to make senseless comments under it. I know how hard defending a failed government can be but try and quote the beerfruds who are waiting to devour your zombie as.s and leave the sensible comments for those who have something sensible to comment

[/s]

Defending what to who? Failures like you who live on the words of cownu the mad hound of beerfraud? No one cares what emotional ipob animals and wailing zombies think 2 groups who use the legs to think and brain to walk.

Ogbuefi2020:
that woman left huge debt in Ogun, he is doing same at the federal level.

Really? I don't know how she handled Ogun then but dealing with Nigeria is her problem

vedaxcool:


The onlh sensible comment made so far in this thread.

The remaining comments largely by fools who claim beerfraud and are interested in zoo economics and wailing zombies who are yet to get over electoral loss induced depression ELID.

It takes only derelict imbec11 to claim that APC said it will entirely fund the budgdt with looted funds. It said recovered funds will be used in funding part of the budget and a specific sum was attributed to how much clearly less than a trillion naira. Unfortunately the two sickos of nairaland ipob animals and wailing zombie with their lose morals support stealing and looting which encourages thieves to steal and defend their loot through legal means.

xofisteecated xombye.