In the over five years that President Goodluck Jonathan has been presiding over the affairs of the country, the Federal Government has borrowed N5.04tn from the domestic debt market.

Jonathan became Nigeria’s acting President on February 10, 2010 and substantive President on May 6,2010 following the death of President Umaru Yar’Adua on May 5,2010. On May 29, 2011, he was sworn in as an elected president.

Records at the Debt Management Office showed that the domestic debt of the Federal Government stood at N3,466,360,000,000 (N3.47tn) as of March 31, 2010.

The latest debt statistics from the DMO as of March 31, 2015 showed that the domestic debt had risen to N8,507,545,474,000 (N8.51tn).

http://www.punchng.com/news/jonathan-govt-incurs-n5tn-domestic-debt-in-five-years/

That Debt is too Much Na Uncle Jona

I thought of analyzing this topic for those who are lazy to read the entire write-up, but I could not, my emotions failed me. This is pure wickedness. Our GDP to debt ratio is at an unprecedented point. Debts are used to finance consumption. God, what did we do to you to allow wicked people continue to be at the helm of affairs in this country

God will Judge Jona appropriately.

I don't think there's anything wrong with our domestic debt profile. When government borrows from local banks and other local financial institutions, these institutions are making an investment. Government also has better and more options of debt service and debt repayment. Therefore, money never leaves the economy. The only problem is that these financial institutions don't reinvest these profits they realise from borrowing to the government by failing to lend to real sector.

How on earth does a domestic debt grow to be #8.51trn, that's so huge. truth be told, the debt cannot be repaid, not at this moment of financial crisis and economy breakdown.

Sweetguy25:
I don't think there's anything wrong with our domestic debt profile. When government borrows from local banks and other local financial institutions, these institutions are making an investment. Government also has better and more options of debt service and debt repayment. Therefore, money never leaves the economy. The only problem is that these financial institutions don't reinvest these profits they realise from borrowing to the government by failing to lend to real sector.

What are you saying? Do you invest in Government bonds or Treasury Bills? What is the relationship between the profits Banks make to Government debt profile? Do you know that most of the debt collected were expended on consumption and amid falling oil prices and poor supply chain, how would the government service these rising debt profiles. FYI, this is just domestic debt, how about foreign debt, have you taking that into consideration to know how pretty bad the Jonathan administration has gotten us into.

This is a bad situation for us. It is so bad that even with debt restructuring you still have to pay. Individuals will not want to be told that the government would not honour its bond or treasury bills obligations. Local banks will be more interested in receiving both interest and principal, even if the interest is reduced.

Boss13:


What are you saying? Do you invest in Government bonds or Treasury Bills? What is the relationship between the profits Banks make to Government debt profile? Do you know that most of the debt collected were expended on consumption and amid falling oil prices and poor supply chain, how would the government service these rising debt profiles. FYI, this is just domestic debt, how about foreign debt, have you taking that into consideration to know how pretty bad the Jonathan administration has gotten us into.

This is a bad situation for us. It is so bad that even with debt restructuring you still have to pay. Individuals will not want to be told that the government would not honour its bond or treasury bills obligations. Local banks will be more interested in receiving both interest and principal, even if the interest is reduced.

If buying government bonds and treasury bills isn't an investment, then what is it? Our foreign debt is the main issue and I think the foreign debt when compared to our GDP is normal. The situation looks bad but from a certain perspective, it doesn't look like what people make out of it.

Sweetguy25:
If buying government bonds and treasury bills isn't an investment, then what is it? Our foreign debt is the main issue and I think the foreign debt when compared to our GDP is normal. The situation looks bad but from a certain perspective, it doesn't look like what people make out of it.

First you must separate the individual economic component which falls within the microeconomic scheme of things from Government, which falls under macroeconomy.

As an individual it is wise to buy government bonds and TBs. However, we are talking about government borrowings i.e domestic borrowings. What are these funds raised from the public used for? I understand they are used to pay salaries - a shame indeed