The Debt Management Office (DMO) has explained that the N2.1 trillion allocated for Debt Service in the 2018 federal government budget was paid directly to the creditors by the Office of the Accountant-General of the Federation (OAGF).
By Ndubuisi Francis
The Debt Management Office (DMO) has explained that the provisions in the annual appropriation acts for debt service are solely dedicated for such payments only, which include the repayment of principal, interest and other charges for both domestic and external debt.
The debt management agency clarified that allocations for debt service obligations are never released to it for spending, adding that in line with the mandate of the Office of the Accountant-General of the Federation (OAGF), the funds are domiciled with the OAGF, who on the advice of the DMO, effects payments directly to the creditors as at when due.
DMO clears air on 2018 N2.1trn debt service
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By Emma Ujah
The Debt Management Office (DMO) has explained that the N2.1 trillion allocated for Debt Service in the 2018 federal government budget was paid directly to the creditors by the Office of the Accountant-General of the Federation (OAGF).
The agency said, yesterday, that the explanation became necessary following media reports that it could not account for funds allocated for Debt Service in the 2018 federal government budget.
The management of the DMO had appeared before the Public Accounts Committee of the House of Representatives last week at a session where the committee enquired about the utilisation of the N2.2 trillion provided in the 2018 Appropriation Act.
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The Central Bank of Nigeria (CBN) has for six years missed its six to nine per cent single digit inflation rate target. At 14.89 per cent in November, which is 32-month high, inflation upswing has not only eroded savings account depositors’ interest income but triggered new wave of investments in alternative assets. Mutual Funds, Eurobonds and commodities markets are new choices for investors and savings account depositors seeking higher yields to protect their funds from inflation-induced capital erosion. Foreign investors are also buoyed by higher returns in Nigeria which remains an incentive for sustained capital inflows. With Nigerian Treasury Bills (T-bills) yield now below one per cent per annum, savvy fund managers, savers and investors need to work smarter to beat rising inflation with higher good returns on investments, writes