₦airaland Forum

Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 1,915,825 members, 3,927,441 topics. Date: Wednesday, 22 November 2017 at 02:10 PM

FG, States Borrow N7.51tn Under Buhari - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / FG, States Borrow N7.51tn Under Buhari (8821 Views)

FAAC Disburses N386bn To FG, States, Lgs In November 2016 / FG, States Spent N538bn On Ghost Workers In Five Years / May Allocation: N305.128bn Shared By FG, States And LGs (1) (2) (3) (4)

(0) (1) (2) (3) (Reply) (Go Down)

FG, States Borrow N7.51tn Under Buhari by Omooba77: 6:33am On Sep 11
The reliance of the federal and state governments on borrowings to finance their activities is not ending soon as the two tiers of government have taken more loans in the past two years, EVEREST AMAEFULE writes

The Federal Government under President Muhammadu Buhari and the 36 states of the federation as well as the Federal Capital Territory have borrowed N7.51tn in the last two years, statistics have revealed.

As of June 30, 2015, just a month after the present crop of leaders took over the leadership of the country, Nigeria’s total debt stood at N12.12tn.

However, as of June 2017, the nation’s total debt had climbed to N19.63tn, according to the latest debt statistics obtained from the Debt Management Office.


The debt stock data released by the DMO revealed that the total public debt stock (external and domestic debt stock of the Federal Government and sub-nationals) as of the end of June was N19.63tn (about $64.19bn at N305.9/$1), made up of external debt stock of N4.6tn (about $15.05bn) and domestic debt stock of N15.03tn (about $49.15bn).

The DMO said in a statement posted on its portal on Sunday, “The domestic debt stock of the Federal Government and sub-nationals accounted for 76.56 per cent of the total public debt stock, while their external debt stock accounted for 23.44 per cent.

“Furthermore, the total public debt stock increased by 2.5 per cent from N19.16tn (about $62.54bn) to N19.64tn (about $64.19bn), during the period under review.

“The total external public debt stock of the Federal Government and sub-nationals increased by 8.98 per cent from $13.81bn in March 2017 to $15.05bn in June 2017, while the domestic debt stock of the Federal Government and the sub-nationals increased by 0.67 per cent from N14.93tn in March 2017 to N15.03tn in June 2017.”

However, an analysis of the debt statistics from the May 29, 2015, when the current leaders took over the reins of power, to June 30, 2017, showed that the country’s total debt had risen from N12.12tn to N19.63tn.

This means that the country’s debt rose by N7.51tn or 61.96 per cent within a period of two years.

As of June 2015, the domestic debt of the Federal Government stood at N8.39tn. Detailed breakdown of the domestic component of the nation’s total debt as of June 30 was not available as of the time of going to press on Sunday.

However, the Federal Government’s domestic debt stood at N11.97tn, while the domestic debt component of the states stood at N2.96tn as of March 31, 2017.

The external debt balance of both the federal and state governments stood at $10.32bn as of June 2015 compared to the $15.05bn recorded as of the end of June this year. This means that within the period, the country’s external debt portfolio had risen by $4.73bn or 45.83 per cent.

The increasing proportion of the foreign debt component reflects a new debt management strategy released by the DMO recently. It also reflects a strategy to reduce high interest payment occasioned by much dependence of domestic debts.

According to the DMO, the country’s new debt management strategy entails balancing the sources of debt to ensure that more resources are borrowed from external sources where the interest rate is seen as lower than interest rates on borrowings from domestic sources.


The Debt Management Strategy 2016-2019 targets the rebalancing of the debt portfolio from its composition of 84:16 (domestic to foreign) to 60:40 by the end of December 2019 (domestic to foreign).

“It supports the use of more external finance for funding capital projects, in line with the focus of the present administration on speeding up infrastructural development in the country, by substituting the relatively expensive domestic borrowing in favour of cheaper external financing,” the DMO said.

Our correspondent reported that the Federal Government spent a total of N1.88tn on domestic debt servicing between 2014 and 2015.

With foreign debt now accounting for 23.44 per cent of the total indebtedness, the Federal Government may achieve the goal of increasing the proportion it to 40 per cent by 2019.

In line with this strategy, the Federal Government recently unveiled a plan to borrow $3bn from foreign sources to refinance some maturing local debts.

The DMO had said that refinancing Federal Government’s maturing $3bn local debts would not only crash the rate of domestic borrowing, but also allow some borrowing space to the private sector.

It stated that borrowing from foreign sources to refinance the local debts would also allow the government time to repay the loans when the economy must have fully recovered from recession and diversified.

The DMO said the move was informed by the lower dollar interest rates in the international capital market, adding that Nigeria was expected to borrow at a rate not higher than six per cent, while issuances of the NTBs in the domestic market were at rates as high as 18.53 per cent.

According to the office, external borrowing is cheaper by about 12 points and will result in substantial cost savings for the Federal Government in debt service costs.

The DMO had said, “Besides reducing the cost of borrowing, the $3bn is expected to be raised for a tenor of up to 15 years, which is very long compared to the maximum tenor of 364 days for NTBs.

“This move will effectively extend the tenor of the government’s debt portfolio. The longer tenor enables the government to repay at a time when the economy would be stronger and more diversified to meet the obligations.”

It added, “The reduction in the level of the FGN’s borrowing from the domestic market will result in a reduction in domestic interest rates and free up borrowing space in the economy, particularly for private sector borrowers.

“The $3bn from the refinancing will also represent an injection of foreign exchange into the economy, which will boost the country’s external reserves.”

The DMO said that the approval of the National Assembly would be obtained for the proposed refinancing before implementation in line with the Debt Management Office Act, 2003.

http://punchng.com/fg-states-borrow-n7-51tn-under-buhari/

2 Likes 1 Share

Re: FG, States Borrow N7.51tn Under Buhari by clarocuzioo(m): 6:36am On Sep 11
Borrowing increased, subsidy was removed, TSA was fully implemented, EFCC recovering billions of dollars, taxes skyrocketed, highest budget so far in the history of this country, yet we are not seeing things that are comesurate with these heavy funds. God help this Nation.

139 Likes 12 Shares

Re: FG, States Borrow N7.51tn Under Buhari by juman(m): 6:40am On Sep 11
The government is bad and so clueless.

There is no hope of better nigeria with this government.

Another government is needed.

48 Likes 5 Shares

Re: FG, States Borrow N7.51tn Under Buhari by 989900: 6:41am On Sep 11
Borrowed to do what?

A more detailed breakdown will be better.

6 Likes 1 Share

Re: FG, States Borrow N7.51tn Under Buhari by ifyan(m): 6:43am On Sep 11
This vegetable regime is moving the nation forward as in from fry pan to fire.

May God help us

48 Likes 4 Shares

Re: FG, States Borrow N7.51tn Under Buhari by divinehand2003(m): 6:52am On Sep 11
And you want Buhari to return in 2019 abi? You will have a ghost as president by then who can't drive the physical economy forward.

35 Likes 2 Shares

Re: FG, States Borrow N7.51tn Under Buhari by Omooba77: 6:53am On Sep 11
Vedaxcool self saw the amount his heart cut him and ran away..

9 Likes

Re: FG, States Borrow N7.51tn Under Buhari by smartty68(m): 6:53am On Sep 11
clarocuzioo:
Borrowing increased, subsidy was removed, TSA was fully implemented, EFCC recovering billions of dollars, taxes skyrocketed, highest budget so far in the history of this country, yet we are not seeing things that are comesurate with these heavy funds. God help this Nation.
And they said we're out of recessiongrin

Word recession is just a scam in Nigeria grin

36 Likes

Re: FG, States Borrow N7.51tn Under Buhari by Histrings08(m): 6:58am On Sep 11
OK... They borrowed a lot, so is that a good or bad?

1 Like 2 Shares

Re: FG, States Borrow N7.51tn Under Buhari by Omeokachie: 7:00am On Sep 11
Mortgaging the future of the nation.

5 Likes

Re: FG, States Borrow N7.51tn Under Buhari by ORACLE1975(m): 7:31am On Sep 11
my God...thats my feature yea APC don finish my unborn child.

12 Likes

Re: FG, States Borrow N7.51tn Under Buhari by Chigorkizz(m): 7:48am On Sep 11
Holy Jesus.

6 Likes

Re: FG, States Borrow N7.51tn Under Buhari by obinnakalu1: 7:52am On Sep 11
See Money

1 Like

Re: FG, States Borrow N7.51tn Under Buhari by Omooba77: 8:02am On Sep 11
Lalasticlala please come and see how much saints don borrow and can you tell us mynd44; sarrki, omenkalives and co, what the money has been expended on

19 Likes 1 Share

Re: FG, States Borrow N7.51tn Under Buhari by richidinho(m): 8:03am On Sep 11
Amaechi and Fashola are competing with each other on looting

No country will ever prosper with these two men as leaders

40 Likes 3 Shares

Re: FG, States Borrow N7.51tn Under Buhari by vedaxcool(m): 8:04am On Sep 11
Meaning Jonathan left Over N12 trn debt on Nigeria

6 Likes 3 Shares

Re: FG, States Borrow N7.51tn Under Buhari by YoungDaNaval(m): 8:09am On Sep 11
Omooba77:
Lalasticlala please come and see how much saints don borrow and can you tell us mynd44; sarrki, omenkalives and co, what the money has been expended on
Use to for medical trip in London

8 Likes

Re: FG, States Borrow N7.51tn Under Buhari by richidinho(m): 8:14am On Sep 11
vedaxcool:
Meaning Jonathan left Over N12 trn debt on Nigeria

No, the 12trn debt is since 1960 bro!

33 Likes 1 Share

Re: FG, States Borrow N7.51tn Under Buhari by sarrki(m): 8:14am On Sep 11
Omooba77:
Lalasticlala please come and see how much saints don borrow and can you tell us mynd44; sarrki, omenkalives and co, what the money has been expended on

Uncle if it is judiciously used its in line

Tell me the country that didn't borrow ?

You don't have to lose your brain because of hate, You may need it after 2023!


Cc vedaxcool, omenka, madridguy, omenka lives, jesuslovesyou, victornezzar

5 Likes 1 Share

Re: FG, States Borrow N7.51tn Under Buhari by WeirdoNg: 8:14am On Sep 11
angry
Re: FG, States Borrow N7.51tn Under Buhari by WeirdoNg: 8:15am On Sep 11
These people don mortgage our future

1 Like

Re: FG, States Borrow N7.51tn Under Buhari by amjoseph19: 8:16am On Sep 11
They amount of stealing going on in this present administration is worst than that of Obj, yaradua and Gej combined.

When this administration is done and a new set take, then we all know the full meaning of corruption.

26 Likes 2 Shares

Re: FG, States Borrow N7.51tn Under Buhari by SalamRushdie: 8:16am On Sep 11
Buhari has mortgaged the future of Nigerians whose parents to be have not even reached puberty yet and the most painful part is that no single infrastructure was built with this humongous debt , no single Mega Watt was added to the grid with this debt , no new hospital was even built , no single virgin road was built and none of the existent was properly rehabilitated , no new car assembly plant has come up, no new irrigation system has been commissioned, in essence Buhari and Co borrowed an unbelievable 7.5 trillion naira to purchase inflation, heightened insecurity, darkness, hopelessness , endemic poverty , cholera out break , uncontrollled Lassa fever out break in 19 states , kidnapping jamboree , heart wrenching crimes against 1000 unarmed shias , zero prosecution in the fight against corruption ..People if anybody body advises you to vote Buhari in 2019 know that that person is a witch or wizard after your destiny ..This must be Buhari's last tenure

33 Likes 2 Shares

Re: FG, States Borrow N7.51tn Under Buhari by vedaxcool(m): 8:17am On Sep 11
richidinho:



No, the 12trn debt is since 1960 bro!


See liar debt since 1960. .. may God's wrath not descend on you for this hellish lie... the $2B borrowed and stolen by GEJ administration was done in 1960? When will shame catch defenders of looters

2 Likes

Re: FG, States Borrow N7.51tn Under Buhari by richidinho(m): 8:19am On Sep 11
vedaxcool:
[s][/s]

See liar debt since 1960. .. may God's wrath not descend on you for this hellish lie

Google is your friend ...bye!

18 Likes 1 Share

Re: FG, States Borrow N7.51tn Under Buhari by Victornezzar: 8:21am On Sep 11
sarrki:


Uncle if it is judiciously used its in line

Tell me the country that didn't borrow ?

You don't have to lose your brain because of hate, You may need it after 2023!


Cc vedaxcool, omenka, madridguy, omenka lives, jesuslovesyou, victornezzar
Hahahahahaha
Anytime dey see something like buhari borrows certain amount
d term d man as a failure

4 Likes 1 Share

Re: FG, States Borrow N7.51tn Under Buhari by vedaxcool(m): 8:23am On Sep 11
richidinho:


Google is your friend ...bye!


Liars answer to every question is google ...they don't have the intellect to prove their lies . grin grin grin run along

3 Likes 1 Share

Re: FG, States Borrow N7.51tn Under Buhari by obonujoker(m): 8:25am On Sep 11
Omooba77:
Vedaxcool self saw the amount his heart cut him and ran away..

Really Vedaxcool went to look for what to lie with.... that is his duty...

17 Likes 1 Share

Re: FG, States Borrow N7.51tn Under Buhari by Omooba77: 8:30am On Sep 11
sarrki:


Uncle if it is judiciously used its in line

Tell me the country that didn't borrow ?

You don't have to lose your brain because of hate, You may need it after 2023!


Cc vedaxcool, omenka, madridguy, omenka lives, jesuslovesyou, victornezzar

Just they allow BMC to read between lines and sense fall on them in the process.

19 Likes

Re: FG, States Borrow N7.51tn Under Buhari by sultaan(m): 8:44am On Sep 11
The government is spending way too much on the civil service, when the government is the biggest employer in an unproductive system the whole nation's resource is used to fund salaries. Unfortunately the government funds/ subsidies importation too for the whole country

1 Like

Re: FG, States Borrow N7.51tn Under Buhari by obinnakalu1: 9:29am On Sep 11
lets make money grin

(0) (1) (2) (3) (Reply)

Why Don't Uniform Men Pay Fare In Buses? / Breaking; Niger Delta Avengers Defeats Saudi Black Water Machineries Kills 91 / APC Is Dead On Arrival In Igboland - Uwazuruike

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (0) (1) (2) (3) (4) (5) (6) (7) (8) (9)

Nairaland - Copyright © 2005 - 2017 Oluwaseun Osewa. All rights reserved. See How To Advertise. 108
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.