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FG converts N850 billion external borrowing to domestic – DMO

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FG converts N850 billion external borrowing to domestic – DMO

Muhammadu Buhari

The Debt Management Office (DMO) says the Federal Government has reappraised its Borrowing Plans and decided to raise the N850 billion earlier approved as External Borrowing from Domestic Sources.

The DMO made this known in a statement by its head of media, Mrs Chinenye Onu, in Abuja on Tuesday.

Onu explained that with the COVID-19 pandemic and its attendant effect on the world economy and the International Capital Market, the Federal Government felt it was more expedient to raise the N850 billion earlier approved as External Borrowing from Domestic Sources.

She said this conversion from external to domestic was to ensure that the implementation of the 2020 Appropriation Act was not jeopardised by lack of funds.

“Thus, the N850 billion is not New or Incremental borrowing, rather it is an amendment of the source of borrowing from External to Domestic.

“For compliance with the law, His Excellency, President Muhammadu Buhari forwarded requests to the Senate and House of Representatives to convert the source for raising the N850 billion from External to Domestic.

“The Senate approved the request on Tuesday, April 28, 2020, while the approval of the House of Representatives is expected.

“Upon approval of the request by the House of Representatives, the DMO will issue FGN Securities in the Domestic Market to raise the N850 billion, thereby providing high-quality investment opportunities for the investing public” she explained.

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