Nigeria domestic debt service grows 40.74%

December 4, 2022
15 Views

Spread the love

 

 

The Central Bank of Nigeria (CBN) has said the cost of domestic debt instruments issued by the federal government trended upwards in 2022, increasing by 40.74 per cent in the first half of the year.

The financial market half year report released by the CBN said domestic debt servicerose to N1.375 trillion from N977.03 billion reported in the same period of 2021.

The apex bank attributed growth in domestic debt to the increase in borrowing by the federal government.

A breakdown of the domestic debt service showed that coupon payments on FGN Bonds accounted for N933.73 billion or 67.90 per cent. Promissory Notes accounted for N286.67 billion or 20.85 per cent while interest expense on Nigeria Treasury Bills stood at N110.86 billion or 8.06 per cent.

READ ALSOOld Naira notes: CBN rules out extension of January 31 deadline

Rental payments on FGN Sukuk was N41.30 billion or 3.00 per cent, while coupon payments on FGN Green Bonds and FGN Savings Bonds accounted for N1.80 billion or 0.13 per cent and N0.72 billion or 0.05 per cent, respectively.

The apex bank also said that the average daily amount for standing deposit facility (SDF) went to N18.51 billion for the122 transaction days in 2022, an increase of 22.53 per cent from N15.11 billion for 120 transaction days recorded in 2021.

Similarly, the average daily interest payments on the deposits increased to N3.26 million in the review period, from N2.38 million in 2021. The higher patronage at the window in the first half of 2022 reflected the increased liquidity level in the banking system, compared with the corresponding period of the previous year.

The report also said that the average daily standing lending facility (SLF) stood at N49.54 billion in 81 transaction days, of which Intraday Lending Facility (ILF) that was converted into SLF stood at N23.02 billion or 46.47 per cent of the total.

 

Advertisement

You may be interested

Shaw: Newcastle Can’t Stop Man United From Lifting Carabao Cup
Sports
21 views
Sports
21 views

Shaw: Newcastle Can’t Stop Man United From Lifting Carabao Cup

Webby - February 2, 2023

Manchester United fullback Luke Shaw has insisted that Newcastle United can’t stop the Red Devils from winning the Carabao Cup.…

Fernandez Not On The Same Level With Casemiro –Murphy
News
9 views
News
9 views

Fernandez Not On The Same Level With Casemiro –Murphy

Webby - February 2, 2023

Liverpool hero, Danny Murphy, has insisted that Chelsea’s latest signing Enzo Fernandez is not better than Manchester United’s Casemiro. Recall…

Silva: I Didn’t Expect Jorginho To Join Arsenal
Sports
Sports

Silva: I Didn’t Expect Jorginho To Join Arsenal

Webby - February 2, 2023

Chelsea defender, Thiago Silva, has revealed that he never expected Jorginho to leave the club for Arsenal. Jorginho completed a…

Leave a Comment

Your email address will not be published.