25 March 2019

Nigeria: Only Govt, Lagos Accessed Capital Market in 2017, Says FRC

Only the federal government and the Lagos State Government accessed the Capital Market for bonds in 2017, a Fiscal Responsibility Commission (FRC) has report said.

According to its 2017 Annual Report and Audited Accounts made available to the News Agency of Nigeria (NAN), the federal government issued N1.66 trillion in bonds, while Lagos state issued bonds worth N97.39 billion. The report said that the federal government bonds accounted for N1.55 trillion of the amount borrowed from the capital market, Sukuk bond, N100 billion; Savings bond, N7.19 billion; while the Green bond stood at N10.69 billion.

"This implies that out of every N100 borrowed by the federal government from the capital market in 2017, about N93 was raised through the federal government bond."

The report said that the Debt Management Office (DMO), did not expressly state the purpose of the bonds, adding that they were likely meant for the augmentation of the 2017 budget.

Giving a breakdown of the Lagos State instrument, the report showed that N46.37 billion was raised at 16.75 per cent for a tenor of seven years for the channelisation of water, construction and completion of roads and flyovers.

It said that N38.77 billion was issued at 17.25 per cent for a tenor of 10 years for the Lagos Enterprise GI upgrade to execute priority projects in the health and education sectors and the channelisation of water transport routes and completion of roads.

Also, N6.91 billion was raised at 15.60 per cent for a seven-year tenor, while N5.34 billion was raised at 15.85 per cent for a 10-year tenor for the same purposes.

According to the report, the borrowings complied with Sections 41 (1) (a) and 44 (2) of the Fiscal Responsibility Act (FRA) 2007. The act stipulates that borrowing by any government in the federation should be for capital expenditure and human development only.

The FRC was established by the FRA to provide for prudent management of the nation's resources.

Nigeria

Buhari Submits List of Cabinet Nominees to Senate (full list)

President Muhammadu Buhari has finally sent his list of ministerial nominees to the Senate. Read more »

See What Everyone is Watching

More From: This Day

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.