The Federal Government through the Debt Management Office (DMO) has released a statement saying it for financed for half year ending January 2018, a total of ₦1.2 trillion in capital projects for the 2017 Appropriation Act passed into law by the National Assembly in July of 2017. In a statement it said “The disbursement of ₦1.2 trillion over a short period of 6months to capital, is a strong and positive development in Nigeria. The release of such a large amount for capital is a strong demonstration of the commitment of the present administration to prioritize improvement in infrastructure in order to stimulate economic growth and development”
The Debt Management Office says it has raised a total of ₦1.254 trillion in line with its statutory mandate of funding federal budgets, from the domestic markets, through Federal Government of Nigeria Bonds, Treasury Bills, Sukuk & Green Bonds. It says the total funds raised so far was consistent with the provision for new borrowing in the 2017 Appropriation Act.
The Debt Management Office says it raised $2.8bn in the International Capital Market through a $300m Diaspora Bond in June 2017 and a $2.5bn Eurobond in November 2017 which together represent about 80% of the ₦1.0675 trillion (about $3.5bn) provided as external borrowing in the 2017 Appropriation Act. The outstanding in $700m provided by External Borrowing is expected from multilateral sources.
In November 2017, Fitch & Moody’s revised the Sovereign Credit Rating on Nigeria’s BB+ to – with a stable outlook, citing rising debt, increasing appetite by Nigerian Deposit Money Banks for Government Securities (that poses a systemic risk for the Banking System), lack of a wide tax bracket that undermines the ability of the Government to diversify their sources of revenues from Oil & Gas.