Nigeria’s Domestic Debt Jumps N1.26trn H1, 2019

• Nigeria’s Domestic Debt Jumps N1.26trn H1, 2019

The Central Bank of Nigeria has disclosed that Nigeria’s domestic debt rose by N1.26 trillion to N13.41 trillion in the first half of the year.

In the half-year report on Federal Government’s domestic debt released by the central bank, domestic debt rose from N12.15 trillion recorded in the same period of 2018 to N13.41 trillion.

“The total domestic debt outstanding at the end of June 2019 stood at N13.41tn, representing an increase of N1.26tn or 10.38 per cent, over N12.15tn in the corresponding period of 2018,” the report stated.

Breaking down the debt stock, FGN bonds account for 72.26 percent or N9.69 trillion of the total debt while Nigerian Treasury Bills constitute N2.65 trillion or 19.77 per cent. FRN Treasury Bonds accounts for N125.99 billion or 0.94 per cent.

The remaining were FGN promissory notes of N707.76 billion or 5.28 per cent, FGN Sukuk valued at N200 billion or 1.49 per cent, FGN green bonds worth N25.69 billion or 0.19 per cent and FGN savings bonds of N10.43 billion or 0.08 per cent.

However, the cost of debt servicing declined by 15 percent to N800.73 billion during the period under review, down from N941.99 recorded in the same period of 2018.

The decline was attributed to the fall in yields on the securities issued in the markets.