By Babajide Komolafe  & Yinka Kolawole

The total public debt of the Federal Government, comprising both external and securitised domestic debt, rose by $6.7 billion (about N1.005 trillion) in the past ten months, from $25.82 billion as at December 31, 2009 to $32.5 billion, currently.

The Director-General, Debt Management Office, DMO, Dr. Abraham Nwankwo, who stated this at a media chat yesterday, in Lagos, also disclosed that two bookrunners have been shortlisted for appointment next week, for Nigeria’s planned sale of $500 million Eurobond before the end of the year.

Nwankwo noted that the domestic debt stock constitutes the bulk of the total public debt at $28 billion, accounting for about 86 percent of the total while the remaining $4.5 billion is for external debt.
Statistics

He revealed a steady increase in domestic debt from 2005 to date, except for 2008 when a marginal decrease was recorded. The domestic debt in 2005 was $11.83 billion; 2006, $13.81 billion; 2007, $18.58 billion; 2008, $17.69 billion, and $21.87 billion in 2009.

The figures for the external debt stocks, however, show that $20.48 billion was recorded in 2005, $3.54 billion in 2006, $3.65 billion in 2007, $3.72 billion in 2008, while $3.95 billion was recorded as external debt in 2009.

Nwankwo also debunked insinuation that the interest rates on Nigeria’s external borrowings are as high as 20 percent.