New Telegraph

February 25, 2024

FG borrows N1trn this year to fund petrol subsidy – DMO DG

…Says debt stock within tolerable limits

The Federal Government borrowed N1 trillion to fund petroleum subsidy retention this year, a development that has led to an increase in the country’s total debt stock, Director- General of Debt Management Office (DMO) Ms. Patience Oniha said.

Nigeria’s current public debt stock as of June 30, 2022 stood at $42.8 billion; a threshold she said is within the acceptable limits and is sustainable

She made the disclosure in a presentation at the Executive Course on Budgeting and Fiscal Transparency at the Army Resource Centre in Abuja.

The DMO boss attributed the current debt stock to the budget deficit, noting that the borrowing plan for 2022 was increased by N1 trillion to enable the government to pay the extra cost of petrol subsidy.

Speaking on the topic, Debt Sustainability Challenges and Strategic Revenue Mobilisation Initiative, the D-G said that the Federal Government had to resort to borrowing to fund the budget due to revenue challenges.

She said that the DMO was deploying World Bank and International Monetary Fund tools to ensure the sustainability of Nigeria’s public debt.

According to her: “These tools include an annual Debt Sustainability Analysis (DSA) and a Medium-Term Debt Management Strategy (MTDS) every four years.”

Read Previous

2023: Court nullifies PDP primaries in Ogun, orders fresh elections within 14 days

Read Next

CBN releases N9trn to sustain economy

Leave a Reply

Your email address will not be published. Required fields are marked *