{"id":45232,"date":"2022-10-21T17:59:46","date_gmt":"2022-10-21T17:59:46","guid":{"rendered":"https:\/\/www.withinnigeria.com\/broadnews\/?p=45232"},"modified":"2022-10-21T17:59:46","modified_gmt":"2022-10-21T17:59:46","slug":"dmo-to-add-n20trn-ways-and-means-loans-to-public-debt-stock","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/broadnews\/2022\/10\/21\/dmo-to-add-n20trn-ways-and-means-loans-to-public-debt-stock\/","title":{"rendered":"DMO to add N20trn \u201cWays and Means\u201d loans to public debt stock"},"content":{"rendered":"<p>The <strong><a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/10\/14\/dmo-counters-bloomberg-says-nigeria-not-planning-to-restructure-debt\/\">Debt Management Office (DMO)<\/a><\/strong> says it will add the Central Bank of Nigeria (CBN)\u2019s N20 trillion \u201cWays and Means\u2019\u2019 loans to the Federal Government\u2019s total debt stock.<\/p>\n<p>The Director-General of the DMO, Patience Oniha, however told our correspondent that it could only be done after necessary approvals by relevant authorities.<\/p>\n<p>Oniha was responding to enquiries following statement by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, that the \u201cWays and Means\u2019\u2019 advances would be securitised.<\/p>\n<p>\u201cBroad terms have been agreed with the CBN. Consequently, the Federal Executive Council (FEC) approval, and subsequently that of the National Assembly is being processed.<\/p>\n<p>\u201cAfter these approvals, the amount will be included in the published public debt data,\u2019\u2019 she said.<\/p>\n<p>Our correspondent reports that the <strong><a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/10\/14\/federal-government-working-to-make-nigeria-irresistible-mining-destination-saraki\/\">Federal Government<\/a><\/strong> had been borrowing from the CBN through \u201cWays and Means\u2019\u2019, a loan facility through which the CBN finances government\u2019s budget shortfalls.<\/p>\n<p>Meanwhile, Ahmed announced that government would repay the N20 trillion indebtedness to the CBN with securities such as treasury bills and bonds issuance.<\/p>\n<p>She said this while giving a breakdown of the 2023 Appropriation Bill, adding that President Muhammadu Buhari had approved the securitisation of the N20 trillion debt.<\/p>\n<p>\u201cThe total Ways and Means are N20 trillion, and Buhari has approved its securitization. The securitization will be over 40 years with an interest rate of nine per cent.<\/p>\n<p>\u201cOver the years, we have been paying the interest component at the current rate that is charged on the Ways and Means,\u201d she said.<\/p>\n<p>Some <strong><a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/10\/18\/corporate-governance-pathway-to-economic-dev-growth-stakeholders\/\">stakeholders<\/a> <\/strong>complained that the Federal Government\u2019s borrowing from the CBN had exceeded five per cent threshold of the prior year\u2019s revenue, as stipulated by the CBN Act, 2007.<\/p>\n<p>They, however, agreed that plans to repay Ways and Means loans through treasury bills do not contravene the CBN Act.<\/p>\n<p>Recalls that the country\u2019s total public debt stock, which the DMO recently announced as N42.84 trillion will witness a sharp increase to N62.84 trillion when the Ways and Means advances are included.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Debt Management Office (DMO) says it will add the Central Bank of Nigeria (CBN)\u2019s N20 trillion \u201cWays and Means\u2019\u2019 loans to the Federal Government\u2019s total debt stock. The Director-General of the DMO, Patience Oniha, however told our correspondent that it could only be done after necessary approvals by relevant authorities. Oniha was responding to [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":45272,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"custom","single_blog_custom":"42922","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"single-left","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"footnotes":""},"categories":[11],"tags":[3918,672],"class_list":["post-45232","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-metro","tag-central-bank-of-nigeria-of-nigeria-cbn","tag-stakeholders"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>DMO to add N20trn \u201cWays and Means\u201d loans to public debt stock &#187; BROAD NEWS \u2014 WITHIN NIGERIA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/10\/21\/dmo-to-add-n20trn-ways-and-means-loans-to-public-debt-stock\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DMO to add N20trn \u201cWays and Means\u201d loans to public debt stock\" \/>\n<meta property=\"og:description\" content=\"The Debt Management Office (DMO) says it will add the Central Bank of Nigeria (CBN)\u2019s N20 trillion \u201cWays and Means\u2019\u2019 loans to the Federal Government\u2019s total debt stock. The Director-General of the DMO, Patience Oniha, however told our correspondent that it could only be done after necessary approvals by relevant authorities. 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