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FG spent highest on commercial loans in servicing external debt in Q1 2019

According to data obtained from DMO, commercial loans gulps 58.99% of the $357.26m the Federal Government spent on debt servicing in 2019 Q1.



FGN Bonds record first undersubscription in 2 years, More borrowing expected as DMO’s Oniha explains President Buhari’s thirst for loan , DMO Takes advantage of MPR cut, issues a total of N103.81 billion, DMO offers N50 million worth of FGN savings bond for subscription.

Commercial loans gulped the largest chunk of the $357.26 million the Federal Government spent on external debt servicing in the first three months of the year (2019). This is according to statistics obtained from the Debt Management Office (DMO).

Breakdown: According to the data, a total of $210.76 million was spent on commercial loans. This represents 58.99% of the external debt servicing spending. The commercial loans include Eurobonds whose maturity dates range from 2018 to 2038.

Patience Oniha, DMO, External debt servicing

Patience Oniha, DMO’s Director General

More so, multilateral loans consumed a total of $79.4 million, representing 22.22%. The multilateral loans include funds dispensed by the two arms of the World Bank – International Bank of Reconstruction and Development (IBRD), and the International Development Association (IDA), as well as the African Development Bank (ADB), and the Islamic Development Bank (IDB).

[READ MORE: CBN raises alarm over Nigeria’s rising debts profile]

Similarly, a total of $67.1 million, representing 18.78% was spent on bilateral loans. The bilateral loans included funding from the Export-Import Bank of China (Chexim) that funded the Nigerian Communications Satellite (NIGCOMSAT) project and the Nigeria National Public Security Communications Systems (NPSCS) project.

Why this matters: Nigeria’s accrued debt stock rose to N24.9 trillion (US$81.2 billion) at the end of March 2019. According to the latest report by the DMO, Nigeria’s total debt portfolio hits N24.9 trillion in the same period, compared to N24.3 trillion in December 2018. That is, quarter on quarter, Nigeria’s total debt stock rose by 2.3% or N560 billion.

[READ ALSO: Lagos remains the state with the highest debt profile]

Sigma Pensions
Concerns from stakeholders: There have been increasing concerns from economic stakeholders in the country, as Nigeria’s total debt stock may hit N30 trillion mark anytime soon. For instance:
  •  the African Development Bank (AfBD) recently revealed that Nigeria spends more than 50% of its revenue on debt servicing;
  • the World Bank has claimed Nigeria’s debt is not sustainable; and
  • the former Central Bank of Nigeria’s Governor, Sanusi Lamido, recently declared that Nigeria is “bankrupt and the country is heading to bankruptcy”.



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Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ).Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.

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Business News

BUA Group, French company announce progress in 200,000 bpd refinery project

This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.



The BUA Group and Axens, a French-based petroleum technology company, have both signed a progress acknowledgement statement for the proposed BUA multi-billion-dollar integrated 200,000 barrels per day refinery in Akwa Ibom State.

This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.

BUA, while making the disclosure in a statement on Wednesday, April 14, 2021, said that the French President, Emmanuel Macron, commended its Chairman, Abdul Samad Rabiu, for his commitment to developing lasting relationships between French and Nigerian businesses.

The statement said that this came as the French Minister for Foreign Trade and Economic Attractiveness, Franck Riester, paid a visit to the BUA Group Headquarters in Lagos where he handed over a personal invitation from Macron to Rabiu to attend the Choose France Summit in June in Paris representing business leaders from Nigeria and Africa.

The French minister also witnessed the signing of a progress acknowledgement statement between BUA Group and Axens of France for the proposed refinery project, according to the statement.

The statement also said that during the visit, it was announced that the BUA chairman had been appointed Chairman of the France Nigeria Investment Club.

While thanking the minister and Macron for their unwavering support in bringing BUA and French businesses together, Rabiu said BUA had so far initiated partnerships and had developed personal relationships with a few French businesses, including Axens.

He expressed confidence in the quality of expertise and technical know-how of the French companies BUA had partnered with.

Sigma Pensions

Rabiu pointed out that the BUA refinery would reduce the huge cost of transporting Nigerian crude offshore, refining it and bringing it back into the country when fully operational.

He said that the choice of Akwa Ibom for the refinery was due to the huge availability of raw materials and its proximity to export petroleum products to regional countries.

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The President of Axens, Jean Sentenac, in his statement, said he was pleased that the project was advancing on schedule and expressed delight for the very good cooperation between all the involved parties, reiterating the commitment of Axens in delivering the BUA Refinery Project on time and with the highest standards.

Bottom line

The completion and take-off of the refinery owned by the BUA Group would come as a huge boost for the Federal Government’s effort to stop the importation of refined petroleum products, ensuring that the country becomes a net exporter of these products.

Stanbic 728 x 90

This will also help to conserve the scarce foreign exchange as the completion and take-off of the Dangote refinery and other similar refinery projects will help ensure self-sufficiency in the country.

The BUA Group, just a few days ago, was listed as one of the companies with an active refinery license from the Department of Petroleum Resources (DPR).


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Covid-19: Nigeria records over 1 million vaccinations

The NPHCDA has stated that it has vaccinated 1,043,737 persons, which is 51.9% of the targeted total proportion.



Covid-19: First world nations oppose waiving intellectual rights for vaccine development

The National Primary Health Care Development Agency has disclosed that Nigeria, as of April 14th, 2021, had vaccinated 1,043,737 persons, which is 51.9% of the targeted total proportion.

The NPHCDA revealed this in a statement on Wednesday evening.

Kwara State leads in the vaccination percentage of target reached, at 110% with 30,708 vaccinations.

Meanwhile, Lagos State has conducted the most vaccinations so far at 192,061 representing 75.7% of its percentage target reached so far.

The Federal Capital has vaccinated 40.1% of its target so far at 44,098 and Kogi State has conducted the least number of vaccinations at 5,568.

In case you missed it

Nairametrics reported earlier that the Nigerian government aimed to get 70 million Johnson and Johnson single-shot COVID-19 vaccines after the African Union recently announced a deal with the drugmaker for 400 million vaccine doses.

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