The Debt Management Office has stated that debt raised for infrastructure projects by the Federal Government must generate enough revenue to service its debt.
This was disclosed by Mrs Patience Oniha, the Director-General of DMO, in Abuja on Thursday at the fifth Budget Seminar organised by the Securities and Exchange Commission (SEC) titled “Financing Nigeria’s Budget and Infrastructure Deficit through the Capital Market.”
The DMO boss stressed the need for projects raised for debt to be able to finance itself, citing debt securities like the Sukuk, which is still serviced by the FG.
“They (the debts) are not being serviced with revenue from those sources (infrastructure).
“ I think that when we are talking about those innovations like revenue, bonds and all that, we should be talking about policies to ensure that the projects that we financed generate revenue,” she said.
In case you missed it: According to the data seen by Nairametrics, total revenue earned in 2020 was N3.93 trillion representing a 27% drop from the target revenues of N5.365 trillion. However, debt service for the year was a sum of N3.26 trillion or 82.9% of revenue.