The Debt Management Office (DMO,) has announced that the Federal Government spent N2.95 trillion to service domestic debts for a period of 5 years (2010-2014) according to a report obtained by Daily times. The report stated that the amount had risen during the period from N334.66bn in 2010 to N846.64bn by December 2014.
The report stated that the Federal Government sets aside funds every year in the budget which is used for servicing both foreign and domestic debts. It was also revealed that the actual amount paid by the FG may differ from what is budgeted.
Over a five year period, the debt service obligation of the Federal Government showed an increase of N511.98bn, which means that in the period, the country’s domestic debt service obligation rose by 152.99 per cent.The increase also reflected the rise in the size of the country’s domestic debt portfolio from N4.55tn in December 2010 to N7.9tn on December 31, 2014, a difference of 73.63 per cent.
The report added that as at December 31, 2010, the domestic debt of the Federal Government was classified as FGN Bonds, N2.9tn; Nigerian Treasury bills, N1.28tn; treasury bonds, N372.9bn; and development stocks, N220m. However, by December 31, 2014; the FGN Bonds accounted for N4.79tn; Nigeria Treasury bills, N2.82tn; and treasury bonds, N296.22bn.
The total interest paid on domestic debt for the year was N794.1bn. The entire in-house debt was N794.1bn. The classified Q4 2010 FGN Bonds, N2.9tn;Nigerian Treasury bills, N1.28tn treasury bonds, N372.9bn while Q4 of 2014 the FGN Bonds accounted for N4.79tn; Nigeria Treasury bills, N2.82tn; and treasury bonds, N296.22bn.
The Director General of the Debt Management Office (DMO), Dr. Abraham Nwankwo, had disclosed last December that Nigeria’s debt profile stood at $64 billion.