Nigeria\u2019s current total debt portfolio (both external and domestic debt), \u00a0including Federal and State Governments, was $40.032 billion or N6.189 trillion as at September 30, 2011.\u00a0<\/span><\/p>\n The Federal Government \u00a0 owes $3.316 billion (or 58.87 per cent) \u00a0 out the $5.633 billion total external debt s portfolio, while various states in the Federation owe $2.317 billion (or 41.13 per cent).\u00a0<\/span><\/p>\n The remaining $34.399 is made up of domestic debts.\u00a0<\/span><\/p>\n The Director General of Debt Management Office (DMO), Abraham Nwankwo \u00a0made these revelations in an interactive session with the House Committee on Aid, Loans and Debt Management \u00a0at the National Assembly yesterday.\u00a0<\/span><\/p>\n Speaking before the Adeyinka Ajayi-heade House committee, Nwankwo said the DMO \u00a0was established during the regime of former President Olusegun Obasanjo and that it led to an appreciable drop of the external debt from over $35 billion (41.86 per cent) of GDP in 2004 to $3.55 billion (3.7 per cent) of GDP in 2006.\u00a0<\/span><\/p>\n According to him, , Nwankwo disclosed that the agency issued the National Debt Management Plan (2008-2012) to ensure effective management of the country\u2019s debt portfolio and guide against excessive and uncoordinated borrowing.\u00a0<\/span><\/p>\n He said: \u201cDMO reintroduced the issuance of sovereign bonds in 2003 but started regular bond issuance in 2005 based on a programmed monthly issuance calendar\u201d as well as \u00a03-year, 5-year, 7-year, 10-year and 20-year are being issued monthly.\u00a0<\/span><\/p>\n The DMO boss said his establishment also conduct Debt Sustainability analysis (DSA) as part of measures towards monitoring the dynamics of the country\u2019s debt sustainability under changing internal and external scenarios.\u00a0<\/span><\/p>\n Nwankwo said \u00a0that there was public outcry against the nation\u2019s debt portfolio in the past but that \u201cbetween 2004 and 2006 the implementation of the exit from Paris Club was completed such that Nigeria was forgiven 60 per cent of the $30 billion foreign external debt, so that apart from $18 billion was written off while $12 billion was paid and so we completely exited.\u201d\u00a0<\/span><\/p>\n He said: \u201cIt is important to note that there was a challenge and discussion as to it was not preferable for Nigeria to go ahead and use the $12 billion that was paid as at that time to pursue the development objectives. But when we looked closely into the implications of being a defaulting and bad debt nation, you will appreciate that it was a better option to pay-off the $12 billion and for us to be forgiven $18 billion.\u00a0<\/span><\/p>\n