Data Shows Federal Govt Borrowed From Citizens Over N984 Billion in 4 Months as Debt Stock Hit N40trn
- In the first four months of 2022, the federal government borrowed N984 billion from citizens data from Debt Management Office has revealed
- The funds obtained would be used to cover the N6.26 trillion budget deficit in 2022 amid dwindling revenue
- In the 2022 budget, FG had planned to borrow from the domestic market N2.506 trillion and foreign from the foreign market N2.506 trillion
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Data has revealed that from January 2022 to April 2022 the federal government borrowed a total of N984.28 billion from citizens.
The money was borrowed to the issuances of bonds issued by the Debt Management Office (DMO) on behalf of the federal government.
FGN bonds are debt securities/ liabilities of the Federal Government of Nigeria (FGN) issued by the debt office on behalf of the federal government. The FGN has an obligation to pay the bondholder the principal and agreed on interest as and when due.
Source: UGC
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Pension Funds Administrators (PFAs) are one of the biggest subscribers of FGN bonds, others are banks and individuals.
Breakdown of how the money was borrowed
ThisDay reports that a total of N1.3 trillion oversubscription was reported by the DMO in the four months under review.
The monthly breakdown revealed that FG borrowedN170.64 billion despite only seeking to raise N150 billion in its 20-year bond issuance.
In February, the FGN sought to raised N150 billion but Nigerians offered N407.72 billion.
In March again, FGN bond issuance recorded an oversubscription of N448.42 billion over the intended N150 billion offered by the DMO.
In addition, FGN bond issuance for April 2022 recorded an oversubscription of N184.46 billion over the intended N225 billion offered by the DMO.
Railway, satellite lead list of 15 projects Nigeria agreed N2.50trn loan with China
Meanwhile, Legit.ng had earlier reported that the Debt Management Office (DMO) announced that Nigeria's overall public debt has increased.
The loan from China is one area many Nigerians are interested in amid stories of assets being seized from nations unable to repay their debt.
DMO has released a detailed analysis of loans received from China in the last 13 years, including how much has been returned and for what projects the funds were obtained.
Source: Legit.ng
