By Akinwale Kasali
This is not the best of time for the Nigeria economy following the declaration by the Debt Management Office, DMO, that Nigerian’s total debt profile has risen to N25.7 trillion.
The Director-General of DMO, Patience Oniha, made this revelation while addressing House of Representatives Committee on Public Account on Friday in Abuja.
“As at June 2019, our debt profile is at N25.7 trillion; this includes the federal, states governments and the Federal Capital Territory (FCT).
“We call it the total public debt, out of this total, the federal government is responsible for 80 per cent of the debt,” she said.
Oniha added that the external borrowing accounted for about 32 per cent of the total debt while 68 per cent was domestic.
The DMO is an agency of government which began operations in 2000 following the debt management problems of the country which led to debt relief.
The agency is also responsible for the management of public debts. Its mandate includes contracting debts on behalf of the Federal Government.
“If you look back several years, over 85 per cent of budget deficits are funded by borrowing which the DMO undertakes as approved by the Federal Executive Council and the National Assembly.
“We borrow from various sources, the multilaterals, the World Bank, Islamic Development Bank, the African Development Bank, China Exim and we also issue products in the international market.
“Locally, we are also very active in domestic borrowing, we issue treasury bills, federal government treasure bonds,” the DG said.
Ms Oniha disclosed that the DMO also serves as an advisory body for the federal government on debt management and put the debt at 25 per cent ratio to the Gross Domestic Product (GDP).
She explained that the agency did not receive any amount borrowed, saying that it was paid directly to the Central Bank of Nigeria (CBN) which ensured that the money was used for what was borrowed for.
The chairman of the committee, Wole Oke, said it was important for parliament to have all the relevant information documented.
He said the parliament needed additional facts and figures following the Minister of Finance’s revelations during the Ministry’s 2020 budget defence that revenue generation was a challenge in the country.
The lawmaker said the committee was determined to check Ministries, Departments and Agencies (MDAs) and to avert abuse of the law in the area of remittances of revenues generated.
Oke however said that even when the MDAs had powers to spend revenue generated, the committee was determined to ensure transparency and accountability.
“This country belongs to all of us, irrespective of the three arms the Constitution recognises, those in the Executives, Legislature and Judiciary are all Nigerians.
“We have to synergise to ensure this country progresses,” Oke concluded.
