The director of the Debt Management Office (DMO), Ms. Patience Oniha said on Friday that Nigerian’s total debt profile stood at N25.7 trillion as of June 2019.
Oniha who disclosed this while addressing the House of Representatives Committee on Public Account in Abuja said out of the total public debt, 68 per cent is domestic while 32 per cent is external.
She also said federal government is responsible for 80 per cent of the debts.
“As of 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.
The DMO chief said external borrowing accounted for about 32 per cent of the total debt while the 68 per cent was domestic.
She said the DMO is an agency of government which began operations in 2000 following Nigeria’s debt management problems.
Oniha explained that DMO is responsible for the management of public debts adding that its mandate includes contracting debts on behalf of the federal government.
“This is clear under the Fiscal Responsibility Act and provisions in the DMO Act. 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 multilateral, 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,” she said.
Besides, she said the DMO serves as an advisory body for the federal government on debt management.
However, she said DMO does not receive any amount borrowed.
She said borrowings are paid directly to the Central Bank of Nigeria (CBN) which ensures that the money is used for the purpose it meant.
In his remarks, the chairman of the committee, Mr. Wole Oke said it was important for parliament to have all the relevant information documented.
He said the legislature needed additional facts and figures following revelations by the minister of finance, Mrs. Zainab Ahmed, during the 2020 budget defence that revenue generation has been a challenge in Nigeria.
He said the committee was determined to check Ministries, Departments and Agencies (MDAs) and to avert abuse of the law in the area of remittance of revenues generated.
Oke said even when the MDAs have the authority to spend the 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,” she added.
