Nigeria Debt Profile 2017: Naija Owes N4.694 Trillion External Debt & N15.679B Domestic Debt

nigeria 2017 debt profileFinance Minister

Nov 15, 2017 – Nigeria Total Debt Profile Hits N20Trillion: Naija Owes N15.679Billion Domestic Debt & N4.694 Trillion In External Debt

Figures released by the Debt Management Office (DMO) yesterday showed that Nigeria’s debt stock has hit N20 trillion—as at September 30.

Domestic debt accounts for 76.96 per cent of this figure while foreign debt accounts for 23.04 per cent.

In figures, domestic debt stood at N15.679 billion, an increase of 4.1 per cent from the N15.034 trillion recorded in June.

Foreign debt stood at N4.694 trillion, a rise of 1.9 per cent above the N4.602 trillion as at June 30.

According to the DMO, the figures show that the federal government was more inclined to domestic debt, which is partly responsible for the high debt service figures.

This year, the Federal Government issued various debt instruments like the N100 billion Sukuk for road construction, monthly FGN Savings bond and the Eurobond.

The Federal Government has already expressed intentions in raising $5.5 billion externally.

According to Finance Minister, Mrs. Kemi Adeosun, $2.5 billion will be used to part finance the N2.322 trillion deficit in the 2017 budget and $3 billion to repay maturing domestic debt.

This will also contribute to attaining the target 60:40 domestic and external debt ratio.

The office said other benefits expected from the plan are: increased availability of funds to the private sector and lower domestic lending rates; both of which will contribute to the growth of the private sector and increase the level of external reserves to support the naira.

Also, the Senate yesterday approved the request of President Muhammadu Buhari to borrow $5.5 billion.

Of the $5.5billion, $2.5 billion, according to the presidential request, will be used to fund the 2017 budget while the balance of $3 billion is meant to refinance domestic debts.

Nigeria’s debt profile stood at N19.6 trillion as at June 30 of this year, according to the Debt Management Office (DMO) document.

Before the unanimous approval of the loan, some senators however called for caution on the way and manner the Federal Government rushes to take foreign loans.

The lawmakers particularly expressed fear that the ability of the country to repay the loans might be limited if the national currency depreciates further.

One of them, Senator Yusuf Abubakar Yusuf, (Taraba central), said: “We must be very careful because this is dependent on what happens in our foreign reserves. If our foreign exchange rate goes to N500/USD1, we are going to have a very serious problem on generating enough foreign exchange to pay the foreign debts.”

The approval of the loan followed the adoption of the report of the Committee on Local and Foreign Debts that vetted the request sought partly to finance the deficit in this year’s budget.

Chairman of the Committee, Senator Shehu Sani told the Senate that “the terms and conditions of the loan are favourable and do not pose any compromise to the integrity, independence and interest of Nigeria and its citizens.

“The projects are essential for rapid economic and social development of Nigeria. And that the projects, when completed, will create jobs through a chain of economic activities.”

The committee noted that the $3 billion local debt refinancing cash will not lead to an increase in the public debt portfolio but will reduce the cost of the debts while the projects are essential for rapid economic and social development of Nigeria.

It said the construction of the second runway in the Nnamdi Azikiwe International Airport will enhance the safety of air passengers, increase the use of the airport by international airlines, “thus increase the revenue base of the government.”

It said the rail projects, when completed, will reduce the use of roads, its attendant congestion and thus minimise the cost of road maintenance.

[The Nation]

5 thoughts on “Nigeria Debt Profile 2017: Naija Owes N4.694 Trillion External Debt & N15.679B Domestic Debt

  1. THE MOST CLUELESS GOVT EVER SEEN AND THE BACKYARD FINANCE MINISTER SHOULD BE FIRED AND BE MADE TO RETURN TO BASIC ECONOMICS 101..I SCREAMED AT EXTERNAL DEBT BUT OUR DAURA COMMANDER IN CHIEF WILL KEEP BORROWING FROM ALL OVER THE GLOBE AND PUTTING THE NATION IN JEOPARDY.REVIVE OUR MONETARY POLICIES,PRIME INTEREST RATES TO MAKE OUR FOREIGN EXCHANGE BETTER AND STEADY.THIS WILL BALANCE LOW LEVELS PER CAPITA GROSS GDP,INCOME INEQUALITY ESPECIALLY IN A NATION OF ELEVATED POLITICAL INSTABILITY,MARGINALIZATION AND RAMPANT CORRUPTION.OUR PRESIDENT DISAPPEARED FOR MORE THAN 100 DAYS AND HAVE SEEN HOW POOR HIS MINISTERS ARE DOING BUT YET DID NOTHING.WITH UNSETTLING RECESSION AND INACTIVE ACTIONS, HE NEEDS TO GO IN 2019

  2. Na small money be that to some of our politicians…the only thing painful when they mention this debt is because that’s the strategy westerners use in enslaving Africans,they created all those World bank,IMF etc as tools to keep third World on check by borrowing them their own money.
    If a country like Nigeria(fake though) can be blessed with good leader (maybe impossible),when one or two of these crook politicians are arrested,enough will be recovered to clear the debt.
    Ghadafi was killed because of his vision for Africa to be truly independence from every corner.

  3. Borrow money, spend most of it on the North, recurrent and politicians and make the south to pay back. Uma never ready to develop

  4. This is what happen when you have country that base it earnings squarely on oil export. The suicidal economic policy of currency devaluation the regime embarked on as soon as taking power has brought so many economic woes to our nation and is still hunting and crippling our economy all the more. The chapter of the economic damage caused by the irrational currency devaluation has now been shifted to that of borrowing of $5.5billion in addition to N19.6 trillion naira the nation already had as debt. Tell me why Nigeria need such money when we have done nothing to offset the earlier debt which interest rate has been rising steadily. The only source of our hard currency earning -oil export- is unreliable as the prices of crude oil could drop sharply anytime, completely dashing our hope of paying back our debt. The explanation on how this latest loan will be spent also sounds very silly and shows lack of economic foresight among policy makers within the current administration. How can you borrow more money to pay off a debt? How are you going to pay back the one you earlier borrowed to offset the current debt? It is a big shame also that despite billions of naira been realised on a daily basis from our oil revenue, nigeria is still borrowing money to prepare for the Nation’s budget. What is so shameful than this from a nation that is the largest oil producer in africa and listed among top ten in the world? Where are we heading to with all this bad economic policy of Nigerian government? In a report recently released by the IMF, they feared that Nigerian debt is rising rather than decreasing. Such assessment by the IMF regarding our nation is sickening! We seemed not to see any praiseworthy impart of this borrowing and borrowing. This skyrocketing debt no doubt has thoroughly exposed this administration’s weakness, ineptitude and inefficiency. And it goes on to tell us that good heads are needed to rejuvenate our prostrate economy in order to better the lives of all Nigerians.

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