Nigeria: Debt Stock Now N2.681 Trillion - AllAfrica.com

Kunle AderinokunAbuja

Nigeria is currently carrying a sum debt load of N2.681 trillion, the Debt Management Office (DMO) have said.

A dislocation of the nation's debt portfolio from DMO obtained by THISDAY revealed that external debt stock was $3.755 billion (N450.6 billion) at the end of March 31, 2008, while the sum domestic debt stood at N2.231 trillion.

The degree of the external debt was less at $3.397 billion in September 2007 but increased slightly in December to $3.6 billion.

The new slightly higher figure, the DMO explained, was as a consequence of the expense of the earlier-secured loans in the current one-fourth - as well as exchange rates fluctuation owing to depreciation of the United States dollar vis-à-vis other countries' currencies in the nation's debt portfolio.

A top functionary of DMO described the debt stock as healthy and "nothing to worry about" because, unlike the liability to City Of Light Baseball Club and its Greater London counterpart, the current stock "is virtually concessionary".

The current external debt is as a consequence of many-sided and non-Paris Club loans.

The many-sided loans, which were loans secured from the World Depository Financial Institution Group, African Development Depository Financial Institution Group, IFAD and European Development Fund, amounts to $3.191 billion. This stands for 84.99 per cent of the sum debt stock, with the remaining amount of $563.6 million, being isobilateral and commercial loans, representing 15.01 per cent.

Further dislocation of the debt portfolio shows that loans secured from the International Depository Financial Institution for Reconstruction and Development (IBRD) of the World Depository Financial Institution Group at an involvement complaint per unit of 4.90 per cent amounted to $355.10 million, while International Development Association (IDA) credits granted to the state at a service complaint of 0.75 per cent was $2.032 billion.

An International Development Association recognition is an interest-free loan collectible in 35 to 40 old age with a 10-year moratorium but which pulls a service charge of 0.75 per cent.

In addition, an International Fund for Agricultural Development (IFAD) credit, which stood at a mere $50 million also constituted a portion of the many-sided debts from the ADB. According to the DMO, a sum of $333.40 million was secured at an involvement charge per unit of 7.85 per cent, African Development Fund (ADF), a window of the continental development depository financial institution also granted the state $264.90 million.

Just like the International Development Association credits, no involvement is charged on ADF loans. But the loans transport a service complaint of 0.75 per cent per annum on outstanding balances, and a committedness fee of 0.50 per cent per annum on undisbursed commitments.

Project loans have got a 50-year repayment period, including a 10-year grace period. Lines of recognition have got a 20-year repayment time time period with a five-year grace period.

The nation's many-sided debts also included the European Development Fund, which represented some $155.70 million given at involvement charge per unit of one per cent.

Relevant Links

For the isobilateral and commercial loans, which are non-Paris Club debts, the state had borrowed to the melody of $184 million and $379 million respectively.

However, on the domestic front, the Federal Soldier Government debts outstanding totalled N2.231 trillion.

The debts comprised FGN Bonds, which stood at N1.248 trillion representing 55.9 per cent; Federal Republic Of Nigeria Treasury Bills (NTBs), N574.929 billion (25.76 per cent; Treasury Bonds, N407.428 billion (18.26 per cent); and Development Stocks, N620 billion (0.03 per cent).