Nigeria’s debt profile surges by N18.89trn under President Buhari

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In the last five years, Nigeria’s debt stock has grown by N18.89tn. This is according to the country’s Debt Management Office, DMO.

In a statement released on Wednesday, the DMO pegged Nigeria’s public debt profile at N31.01tn as at the end of June.

According to the DMO, as of the end of June 2015, one month after the present came into power, the country’s debt profile stood at N12.12tn.

“The data show that in naira terms, the total public debt stock which comprises the debt stock of the Federal Government, the 36 state governments and the FCT stood at N31.009tn or $85.897bn.

“The corresponding figures for March 31, 2020 were N28.628tn or $79.303bn,” the DMO said.

This means that in the last five years under the President Muhammadu Buhari administration, the country’s debt rose by 155.86 per cent.

Nigeria’s total public debt includes the debt stock of the Federal Government, the 36 states and the Federal Capital Territory.

However, most of the debts were contracted by the Federal Government.

Latest date from the Central Bank, released on Tuesday showed that  the Federal Government’s component of the country’s debt stood at N24.52tn as of March 31.

The DMO statement indicated that the debt increased by N2.38tn within a space of three months.

The debt office explained that the increase in the debt stock by N2.381tn or $6.59bn was accounted for by the $3.36bn budget support loan from the International Monetary Fund and new domestic borrowing to finance the revised 2020 Appropriation Act.

A breakdown of the country’s total debt showed that the external component amounted to N11.36tn or 36.65 per cent of the total debt.

This leaves N19.65tn or 63.35 per cent of the country’s debt portfolio as the domestic component.

The external debt commitment of the Federal Government alone stood at N9.82tn or 31.68 per cent of the total debt profile.

On the other hand, the external debt commitment of the states and the FCT stood at N1.54tn or 4.96 per cent of the total debt commitment.

The domestic debt of the Federal Government only stood at N15.46tn or 49.84 per cent of the national total debt.

The states and the FCT, on the other hand, owe domestic debt of N4.19tn. This is equivalent of the 13.51 per cent of the nation’s total debt commitment.

On the whole, the Federal Government owe N25.28tn while the subnational governments owe N5.73tn.




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