Nigeria’s Debt composition is now 30% External and 70% Domestic (30-70), the Director-General of the Debt Management Office of Nigeria Ms. Pat Oniha disclosed this today in a business programme on Channels Television.
Ms Oniha said the composition had changed from what was obtainable two (2) years ago which was a 15% external and 85% domestic debt structure.
She assured the nation that the debt level was sustainable and well within the guidelines and provisions of borrowings and debt management.
According to her “ Nigeria’s borrowing remains sustainable in the short, medium to long term levels, guided by the DMO objective of prudence”.
On the build up to the 2019 general elections, Oniha said there was no political risk to Nigeria’s debt, because investors are looking at the fundamentals from the gradual reduction in inflation rate (11.23%), rising external debt(about $47bn) to the monetary policy rate which remains stable at 14%.
Speaking on the refinancing of domestic debts in the country, Oniha shared that the Federal Executive Council and the National Assembly approved $3bn for it and was achieved in November, 2017 ($500m) and February, 2018 ($2.5bn).
Between December, 2017 to June, 2018 Ms Oniha said about N830bn worth of treasury bills had been redeemed by the Federal Government, which has brought liquidity to the Nigerian financial market.