Well, while we have been very happy that the Federal Government has done away with about $30 billion of it Paris Club debt, and recently it is believed that the London Club debt has been paid off, it is just a little too early to be celebrating our debt freedom just yet.

There's currently $3 billion owed to non-Paris Club, non-London Club creditors, there's also the $13 billion owed to organizations within Nigeria.

It's either the debts are being paid or they are left alone. Any partial debt payment could result in another build up in which the approximate $3.3 billion bilateral and multilateral debts could become $30 billion in the future.

Now this debt we keep considering is just the Federal debt. What about the state debt? With an average state debt of $300 million (N40 billion) multiplied by about 36 states, that's another $10 billion.

So total government debt is approximately $26 billion; counting local government debts as negligible. So what is all this story about a debt free nation? If the truth is not told about the problems we face, how can we solve them?

Where is the debt freedom?

your calculations are not exactly accurate - the total foreign debt is a consolidation of both federal and state loans, for those states which owed foreign debts, the fed govt makes monthly deductions from their allocations to service the debt. the $3billion being owed is being negotiated for settlement, I don't think the Debt Management Office has finished its job in that respect.

Its true that we still have high levels of domestic debt, though I am at a loss as to whom exactly these monies are owed to - is it commercial banks or contractors who have executed projects and have not been paid or pension liabilities or a combination of the above?

the domestic debt I believe cannot be fully liquidated suddenly without causing some adverse shocks to the economy, but it should be tackled in a planned manner over a period of say 10 years.

Debt freedom is real - we no longer need to pay $1.5billion annually to foreigners with no positive impact locally - if we do this for domestic debt, we can at least be assured that a chunk of those funds will remain domestic and have positive economic impact.

It would help if the true position is shown to the public. but hey, whats the likelihood of that ever happening.

In that regard, the CBN/DMO make regular pronouncements, I can't find the links right now, but I believe they are pretty transparent on that account.

this recent article gives an indication of the state of things.

http://www.thisdayonline.com/nview.php?id=84288

there i nothing wrong with domestic debt, or debt for that matter as long as the money borrowed is used for productive purposes. what's the problem with nigeria owing nigerian banks and the like for projects?

Total US debt is more $20 trillion. Federal Government debt is $8 trillion. So essentially National debt does not come to kill the citizens in their sleep. However, let us not deceived into celebrating something that doesn't exist. Madam Okonjo Iweala has claimed that Nigerians all around the world have been showing their gratitude to her for helping to pay off Nigeria's debt.

Once we start lying that we're debt free, then when money is needed to service the debt, we will lie that the money is being used for road construction. Then when we need to construct road, we we appropriate money meant for something else.

I'm just asking for truth god transparency. That is what we need right now, no fanciful celebration of claims.

I'm just asking for truth god transparency. That is what we need right now, no fanciful celebration of claims.

sadly this hard to get in present day nigeria

Total US debt is more $20 trillion. Federal Government debt is $8 trillion. So essentially National debt does not come to kill the citizens in their sleep. However, let us not deceived into celebrating something that doesn't exist. Madam Okonjo Iweala has claimed that Nigerians all around the world have been showing their gratitude to her for helping to pay off Nigeria's debt.

Once we start lying that we're debt free, then when money is needed to service the debt, we will lie that the money is being used for road construction. Then when we need to construct road, we we appropriate money meant for something else.

I'm just asking for truth god transparency. That is what we need right now, no fanciful celebration of claims.

this was always plainly stated. if one was deceived, it was because they were ignorant of the fact that nigeria also borrows domestically. however that isnt the fault of the government. maybe the media, but not the governemnt. foreign debt is where the problem lies, not domestic

@Poster

and your point is? I guess when you owe 100 naira and you manage to get 50 naira or more written off, I guess u wont be happy about the written up part of it?

I don't understand how $3 billion plus $10 billion equals $26 billion.

$3 billion foreign debt remaining
$13 billion domestic debt.
$10billion gross debt of states.

The issue is not whether some of the debt is written off or not. I'm happy about all that. The issue is that we should focus on our real problems rather than start celebrating an inexistent debt-freedom.

the last figure is inaccurate, all the foreign debt has been paid down to $3billion, there is no state debt owed separately to foreign creditors.

@debosky

debt is debt. Whether foreign, domestic, local government, State, DEBT IS DEBT!

I dont disagree mate, but surely $3 billion is a whole lot less than $13billion foreign debt.

there is an existent freedom, no paying of $1.5billion yearly to foreign creditors, IF used properly such funds can transform important sectors of the economy

@debosky

it is the $3 billion foreign debt of today that will grow up to become the $30 billion debt of the future.
The young shall grow.

It is being liquidated, they are not simply leaving it there to fester and grow again, all the debt will be resolved soon

yes nigeria is debt free! u can kiss it or leave it.

now if u are talkin about domestic 419 debt, mennh im out?

the hunter will soon be hunted