The country’s domestic debt profile rose by three per cent to N6.153trillion in June for the second quarter, representing an increase of N187billion over the figure recorded in the first quarter of the year.
Statistics obtained from the Debt Management Office on Monday revealed that the domestic debts had increased from N5.966trillion ($37.71billion) at the end of the first quarter March 31, 2012, to N6.153trillion ($38.89billion) at the end of the second quarter June 30, 2012.
Details of the domestic debts showed that Federal Government of Nigeria FGN bonds accounted for about 60.37 per cent of the money borrowed (N3.71trillon) by the Federal Government from internal sources as at June ending.
The Nigerian Treasury Bills accounted for N2.08trillon or 33.88 per cent, while Treasury Bonds accounted for N353billion or 5.75 per cent.
As at March 31, 2012, the domestic debt component of the total debt profile, which stood at N5.966trillon, showed that FGN bonds accounted for N3.67trillion or 61.44 per cent of the money borrowed by the Federal Government.
The Nigerian Treasury Bills accounted for N1.95trillion or 32.63 per cent, while Treasury Bonds accounted for N353.73million or 5.93 per cent.
The debt to GDP ratio is slightly less than 20 per cent. With latitude of 30 per cent debt to GDP ratio, the government can add up to 50 per cent of the current debt level.
In the last few months financial analysts have raised concerns about Nigeria’s rising domestic profile.
Last Month the Minister of Finance Dr Ngozi Okonjo-Iweala said although Nigeria’s huge domestic debt profile was ‘worrisome’, the fiscal authorities were taking measures to ensure it didn’t get to unsustainable levels.
She also expressed concern over the high interest rate at which the federal government was raising debt which according to her, was not sustainable.
