NAN/
Only the Federal Government and the Lagos State Government accessed the Capital Market for bonds in 2017, a Fiscal Responsibility Commission (FRC) report says.
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 S
The report
“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 says the Debt Management Office (DMO), did not expressly state the purpose of the bonds, it added that they were likely meant for the augmentation of the 2017 budget.
Giving a breakdown of the Lagos S
It
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.