DMO explains position on missing N2.2tn in 2018 Appropriation Act

The Debt Management Office has denied the rumour making the rounds that it was unable to account for the sum of N2.2 trillion allocated to its office in the 2018 Appropriation Act.

The House of Representatives Committee on Public Accounts had on Friday last week asked the Office of the Accountant-General of the Federation to forward the financial statement on the utilisation of the N2.2tn revenue accruing from foreign and domestic debts raised by Debt Management Office.

In a press statement published on the debt office’s website, in reaction to allegations by some media outlets (not Ripples Nigeria) that it was unable to account for the ₦2.2 trillion allocations to the DMO in the 2018 Appropriation Act, DMO describes the reports as not only false, but extremely misleading.

Clarifying the issue, the DMO explained that of the N2.2 trillion provided in the 2018 Act; only the sum of N721, 251,798.00 was appropriated to its agency, while the remaining N2.1 trillion was earmarked for Debt Service.

Read also: Nigeria still waiting to receive approved $5.83bn foreign loans – DMO

“The amount of ₦2.2 trillion was not available as the DMO’s total allocation since ₦2.1 trillion was specifically meant for servicing of Nigeria’s Domestic and External Debt. This explains why the Debt Service is expressly stated as a separate line item in the annual Appropriation Acts, while the DMO’s Expenditure is also stated separately”

“The DMO wishes to emphasise that the provisions in the Annual Appropriation Acts for Debt Service, including the 2018 Appropriation Act, are dedicated for Debt Service payments only; that is, for the repayment of Principal, Interest, and other Charges for both Domestic and External Debt.”

The statement added that the funds for Debt Service are never released to the DMO for spending, rather, 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.

“Such creditors include multilateral and bilateral lenders like the World Bank, African Development Bank, Exim Bank of China, investors in Nigeria’s Eurobonds, as well as, investors in securities issued in the domestic market such as FGN Bonds, SUKUK, Green Bonds and Nigerian Treasury Bills.”

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