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CBN: Domestic debt servicing cost hits N941.9bn in H1 2018



CBN: Domestic debt servicing cost hits N941.9bn in H1 2018


Domestic debt servicing rose to N941.99billion in the first half of this year from N687.37 billion at end-June 2017, the Central Bank of Nigeria (CBN) has said.
The apex bank disclosed this in its Half Year Activity report posted on its website yesterday.
According to the banking watchdog, the increase in domestic debt servicing cost was triggered by the rise in the country’s domestic debt.
Specifically, the CBN said: “The cost of domestic debt instruments of the Federal Government of Nigeria (FGN) stood at N941.99 billion at end-June 2018, representing an increase of 37.04 per cent when compared to N687.37 billion at end-June 2017. The increase in the cost was attributable to the rise in the stock of the domestic debt, from N11,860.77 billion at end-June 2017, to N12,151.44 billion at end-June 2018.
“A breakdown showed that coupon payments for FGN Bonds, FGN Green Bonds and FGN Savings Bonds accounted for N542.73 billion or 57.62 per cent, N0.72 billion or 0.08 per cent and N0.50 billion or 0.05 per cent, respectively. “The interest payments on NTBs and FRN Treasury Bonds stood at N379.51 billion or 40.29 per cent and N10.36 billion or 1.10 per cent, respectively. Meanwhile, rental payments on FGN Sukuk of N8.17 billion or 0.87 per cent accounted for the balance.”
Furthermore, the CBN report shows that Nigeria’s debt stock during the review period comprised: “FGN Bonds worth N8,927.66 billion or 73.47 per cent, Nigerian Treasury Bills (NTBs) worth N2,953.58 billion or 24.31 per cent and FRN Treasury Bonds of N150.99 billion or 1.24 per cent.
“Others included FGN Sukuk worth N100.00 billion or 0.8 per cent, FGN Green Bond N10.69 billion or 0.09 per cent and FGN Saving Bonds of N8.52 billion or 0.07 per cent. Consequently, the cost of servicing the debt grew by 37.04 per cent to N941.99 billion at end-June 2018, compared to N687.37 billion in the corresponding period of 2017.”
However, the report stated that the total treasury bills issued and allotted during the review period was: “N1,653.37 billion apiece, indicating a decrease of N1,275.88 billion or 43.56 per cent below N2,929.25 billion apiece in the corresponding period of 2017.
“The decrease was in line with Nigeria’s medium term debt management strategy, attributable to reduced volume of NTB issues and the redemption of NTBs worth N638.90 billion in favor of foreign issues. Total public subscription, stood at N3, 223.36 billion, compared to N3, 966.92 billion in the corresponding period of 2017,” the report stated.

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    November 8, 2018 at 8:55 am

    Like!! Really appreciate you sharing this blog post.Really thank you! Keep writing.

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