FG Can’t Borrow More Than 6.7 Trillion Naira This Year - DMO
The federal government has been borrowing money furiously since the beginning of this year.
Some analysts and economic watchers have feared that the country may be borrowing more than it can bear to pay back.
But the Debt Management Office, DMO has said it has put a cap on how much the government must borrow this year.
The Federal Government, DMO said, can borrow up to but not more than $22 billion, about 6.7 trillion naira in the 2017 fiscal year.
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The DMO, in its ‘Determination of Borrowing Limit for 2017’ report, stated that the Federal Government could borrow up to 5.89% of the country’s Gross Domestic Product, GDP estimated at $374.95 billion.
According to the DMO, the country’s new debt management strategy also entails balancing the sources of debt to ensure that more resources are borrowed from outside the country where the interest rate is lower than interest on funds from Nigeria.
Nigeria’s total debt stood at 19.16 trillion naira as of March 31, 2017.
Segmenting the components of the national debt, the DMO put the Federal Government’s domestic debt at 11.97 trillion naira.
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