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FG’s Domestic Debt Rose To N13.4trn H1 2019 ― CBN
FG’s Domestic Debt Rose To N13.4trn H1 2019 ― CBN
…as apex bank makes N21.211bn profit on SLF, rediscounting, repo
Total domestic debt of the Federal Government of Nigeria (FGN) rose to N13.4 trillion by the end of June 2019.
The Central Bank of Nigeria (CBN) Financial Markets Half Year Report noted that the figure was ₦1,261.36 billion or 10.38 per cent higher than the ₦12,151 billion domestic debts position during the corresponding period of 2018.
The debt stock during the review period comprised FGN Bonds worth ₦9.691 trillion or 72.26 per cent, Nigerian Treasury Bills (NTBs) worth ₦2.651 trillion or 19.77 per cent and FRN Treasury Bonds of ₦125.99 billion or 0.94 per cent.
Others included FGN Promissory Notes of ₦707.76 billion or 5.28 per cent, FGN Sukuk worth ₦200.00 billion or 1.49 per cent, FGN Green Bonds worth ₦25.69 billion or 0.19 per cent and FGN Savings Bonds of ₦10.43 billion or 0.08 per cent.
In spite higher debt stock, however, the cost of debt servicing declined by 15.00 per cent to ₦800.73 billion at end-June 2019, compared to ₦941.99 billion in the corresponding period of 2018 due to declining yields in the fixed income market during the review period.
CBN also reported the average daily volume of standing lending facility (SLF) to banks to be ₦95.63 billion in 121 transaction days, of which Intraday Liquidity Facility (ILF) conversion constituted ₦35.50 billion or 37.12 per cent of the total request.
“As a result, the average daily interest income amounted to N66.87 million, totalling N5,372,400,000 during the period under review.”
This contrasted an average daily SLF volume of ₦57.36 billion in 123 transaction days of the first half of 2018 of which ILF conversion constituted ₦45.54 billion or 79.39 per cent of the total request.
Consequently, the average daily interest income was ₦44.40 million.
It explained that the higher patronage at the window in 2019 reflected the impact of the prevailing liquidity conditions in the banking system.
Patronage at the Standing Deposit Facility (SDF) window reflected an average daily amount of ₦67.64 billion for the 121 business days in the first half of 2019, representing a decrease from ₦88.30 billion for the 121 transaction days out of 123 business days in the corresponding period of 2018.
Similarly, the average daily interest payments on the deposits decreased to ₦22.48 million in the review period, from ₦30.43 million in the corresponding period of 2018.
The decreased volume of transactions reflected in the review period was due to the tight liquidity conditions in the banking system.
Patronage at the SDF window was low in 2019 with a daily average of ₦67.64 billion, compared to ₦88.30 billion in the corresponding period of 2018. The reduction in transactions was due to the tight liquidity conditions in the banking system.
According to the report, CBN also re discounted Bills worth ₦54.44 billion with 170 to 352 days to maturity at 13.50 per cent, and in the process, earning an interest totalling ₦6.59 billion.
I addition, total value of repurchase (repo) transactions in the first half of 2019 amounted to ₦611.30 billion, with interest rates ranging from 18.50 to 19.50 per cent from January to March 25, 2019, and 18.00 to 19.00 per cent from March 26 to June 2019, following the downward review of MPR.
“The tenors were for 4- to 90-days and the total interest earned amounted to ₦19.25 billion.”
Tribune
Featured
NELFUND: The Renewed Hope Engine Propelling Nigeria’s Youth into Tomorrow
By Dayo Israel, National Youth Leader, APC
As the National Youth Leader of the All Progressives Congress, I have spent most of my tenure fighting for a Nigeria where every young person, regardless of their ward or local government, family income, or circumstance, can chase dreams without the chains of financial despair.
Today, that fight feels like victory, thanks to the Nigerian Education Loan Fund (NELFUND). Launched as a cornerstone of President Bola Ahmed Tinubu’s Renewed Hope Agenda, this initiative isn’t just a policy tweak; it’s a revolution. And under the steady, visionary hand of Managing Director Akintunde Sawyerr, NELFUND has transformed from a bold promise into a roaring engine of opportunity, disbursing over ₦116 billion to more than 396,000 students and shattering barriers for over a million applicants.
Let’s be clear: NELFUND was always destined to be a game-changer. Signed into law by President Tinubu on April 3, 2024, it repealed the outdated 2023 Student Loan Act, replacing it with a modern, inclusive framework that covers tuition, upkeep allowances, and even vocational training—ensuring no Nigerian youth is left on the sidelines of progress.
But what elevates it from groundbreaking to generational? Leadership. Enter Akintunde Sawyerr, the diplomat-turned-executioner whose career reads like a blueprint for results-driven governance. From co-founding the Agricultural Fresh Produce Growers and Exporters Association of Nigeria (AFGEAN) in 2012—backed by icons like former President Olusegun Obasanjo and Dr. Akinwumi Adesina—to steering global logistics at DHL across 21 countries, Sawyerr brings a rare alchemy: strategic foresight fused with unyielding accountability.
As NELFUND’s pioneer MD, he’s turned a fledgling fund into a finely tuned machine, processing over 1 million applications since May 2024 and disbursing ₦116 billion—₦61.33 billion in institutional fees and ₦46.35 billion in upkeep—to students in 231 tertiary institutions nationwide. That’s not bureaucracy; that’s brilliance.
Sawyerr’s touch is everywhere in NELFUND’s ascent. Since the portal’s launch, he’s overseen a digital ecosystem that’s as transparent as it is efficient—seamless verification, BVN-linked tracking, and real-time dashboards that have quashed misinformation and built trust. In just 18 months, the fund has empowered 396,252 students with interest-free loans, many first-generation learners who might otherwise have dropped out.
Sensitization drives in places like Ekiti and Ogun have spiked applications — 12,000 in a single day in one instance, while expansions to vocational centers in Enugu pilot the next wave of skills-based funding. And amid challenges like data mismatches and fee hikes, Sawyerr’s team has iterated relentlessly: aligning disbursements with academic calendars, resuming backlogged upkeep payments for over 3,600 students, and even probing institutional compliance to safeguard every kobo. This isn’t management; it’s mastery—a man who doesn’t just lead but launches futures.
Yet, none of this happens in a vacuum. President Tinubu’s alliance with trailblazers like Sawyerr is the secret sauce securing Nigeria’s tomorrow. The President’s Renewed Hope Agenda isn’t rhetoric; it’s resources—₦100 billion seed capital channeled into a system that prioritizes equity over elitism. Together, they’ve forged a partnership where vision meets velocity: Tinubu’s bold repeal of barriers meets Sawyerr’s boots-on-the-ground execution, turning abstract policy into tangible triumphs. It’s a synergy that’s non-discriminatory by design—Christians, Muslims, every tribe and tongue united in access—fostering national cohesion through classrooms, not courtrooms.
As Sawyerr himself notes, this is “visionary leadership” in action, where the President’s political will ignites reforms that ripple across generations.
Why does this matter to us, Nigeria’s youth? Because NELFUND isn’t handing out handouts—it’s handing out horizons. In a country where 53% of us grapple with unemployment, these loans aren’t just funds; they’re fuel for innovation, entrepreneurship, and endurance.
Picture it: A first-generation polytechnic student in Maiduguri, once sidelined by fees, now graduates debt-free (repayments start two years post-NYSC, employer-deducted for ease) and launches a tech startup. Or a vocational trainee in Enugu, equipped with skills funding, revolutionizing local agriculture. This is quality education that endures—not fleeting certificates, but lifelong launchpads. Sawyerr’s focus on human-centered design ensures loans cover not just books, but bread—upkeep stipends of ₦20,000 monthly keeping hunger at bay so minds can soar. Under his watch, NELFUND has debunked doubts, refuted fraud claims, and delivered results that scream sustainability: Over ₦99.5 billion to 510,000 students by September, with 228 institutions on board.
As youth leaders, we see NELFUND for what it is: A covenant with our future. President Tinubu and MD Sawyerr aren’t just allies; they’re architects of an educated, empowered Nigeria—one where poverty’s grip loosens with every approved application, and innovation blooms from every funded desk. This isn’t charity; it’s an investment in the 70 million of us who will lead tomorrow.
We’ve crossed one million applications not because of luck, but leadership—a duo that’s turning “access denied” into “future unlocked.”
To President Tinubu: Thank you for daring to dream big and backing it with action.
To Akintunde Sawyerr: You’re the executor we needed, proving that one steady hand can steady a nation.
And to every Nigerian youth: Apply. Graduate. Conquer.
Because with NELFUND, your generation isn’t just surviving—it’s thriving, enduring, and eternal.
The Renewed Hope isn’t a slogan; it’s our story, now written in scholarships and success. Let’s keep turning the page.
Dayo Israel is the National Youth Leader of the All Progressives Congress (APC).
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