Everest Amaefule, Abuja

The nation’s total indebtedness to foreign and local creditors now stands at N19.16tn, the Debt Management Office has said. This is N1.8tn increase from the N17.36tn recorded at the end of December 2016.

As of March 31, 2015, the country’s total debt stood at N12.06tn. This means the debt level increased by N7.1tn in two years.

Segmenting the national debt, the DMO put the Federal Government’s domestic debt at N11.97tn. Two years ago, as of March 31, 2015, this component of the debt burden stood at N8.51tn.

This means that within a period of two years, the Federal Government has borrowed a total of N3.46tn from domestic creditors. This shows that the domestic debt of the Federal Government has increased by 40.71 per cent.

In the same period, the country’s external debt (for the federal and state governments) rose from $9.46bn to $13.81bn. This means that within the two-year period, the country’s external debt rose by $4.35bn or 45.98 per cent.

The external debt component, however, has been affected by exchange rate variations as the last two years have witnessed noticeable changes in foreign exchange rates.

According to the DMO, the official exchange rate of N306.35 to $1 was used in calculating the country’s external debt for March 31, 2017, while the official rate of N197 to $1 was used in determining the foreign debt for March 31, 2015.

The domestic debt component of the states stood at N2.96tn as of March 31, 2017, up from the figure of N1.69bn at the same time in 2015.

This means that within the period of two years, the domestic debt of the states rose by N1.27tn or 75.15 per cent.

Amidst drying revenues from oil and gas, the government has in the last two years increasingly depended on borrowing even to carry out routine responsibilities.

Although foreign debts are accounted as cheaper than domestic debts, the government has increasingly depended on domestic sources of borrowing as foreign donors place more stringent conditions before granting credit facilities to the government.

To raise the required funds from the domestic debt market, the Federal Government has been active in the market with a number of instruments, including FGN Bonds and the Nigeria Treasury Bill. It recently floated a new instrument known as the FGN Savings Bond.

The International Monetary Fund had recently projected that Nigeria’s indebtedness would climb to 24.1 per cent of the nation’s Gross Domestic Product by 2018. It said that the country’s current indebtedness would have reached 23.3 per cent of the GDP by the end of 2017.

The country closed 2016 with a debt to GDP ratio of 18.6 per cent. By the end of 2015, Nigeria’s debt to GDP ratio stood at 12.1 per cent, according to the Bretton Wood institution.

Nigeria’s GDP for the year ended December 31, 2016 stood at N67.98tn, according to the National Bureau of Statistics.

Going by the projection of 24.1 per cent for 2018, within three years, the nation’s debt to GDP ratio would have gone up by 100 per cent, from 12.1 per cent in 2015.

Although Nigeria’s debt to GDP ratio is considered among the lowest in Africa, some experts have expressed worries about the increase in debt accumulation in recent years, while others are worried about the quality and utilisation of the debts.

The World Bank recently expressed concern over the debt servicing to revenue ratio, saying that reduced earnings might render the country’s debt unsustainable. A total of N1.84tn was provided in the 2017 budget for debt servicing.

Nigeria’s debt profile is dominated by local debts, which are characterised by high interest rates. Efforts are being made to secure more foreign debts and reduce the exposure of the Federal Government to the domestic debt market.

http://punchng.com/nigerias-debt-rises-by-n7-1tn-in-two-years/

That is the 'change' Nigerians voted for.
HALA MADRID!!!!!!!!!
DUODECIMA!!!!!!!!

Hausa-Fulani and Yorubaa will destroy this country...they are just scattering everything like babies.

Very good! Borrow the country to death! CHANGE is real..

I wonder where those idiots are that claim that Bubu is doing some magic to pay salaries and disburse funds and if not for his amazing magical wisdom, Nigerian debt profile would have hit the roof? In just 2 years they have incurred more than half of what was left in 2015 and they have not even started implementing and funding 2017 budget! Una well done o!

Let's see what BMC would tell us, they would blame Jonathan after 2 years he's gone

That's too little. It should be more.

Na buhari fit una

No Hope for Nigeria. Is it not time they lay this country 6ft beneath the earth

they no dey ever owe us ni?

Borrow borrow don tire me for this country

Awon oni gbese!!!!!!!!

Bullhari/apc is working

The minister of finance who thinks and never have statistics of how the economy is doing under her watch. Who thinks we are getting out of recesssion. See yourself.
This change, I mean this change is a negative change

Aside borrowing, the devaluation of naira also attributed to debt increase.

what has the BMC Idiots gats to say in regards ?

Lol... I thought Buhari is saving money??

If Buhari survives his poor health he should one day be charged to court for Economic Sabotage, recklessness, "wrecklessness" and brigandy.....See the pain we voted with our short sightedness

By the time Buhari and his band of rogues are through with Nigeria ....
We can never come out of debt in three generations

People who know nothing about governance and economic management
All because they just want power and key to our treasury

Each time I hear that adeosun speak
I weep for Nigeria

Despite the drastic fall in FG income due to the near total collapse of oil prices at the international market, the FG still managed to check her borrowing, maintaining it at 3trillion in two years! That is absolutely commendable if you ask me.

The question therefore is, how did we end up owing as much as 8trillion under years of surplus earnings? We had oil selling at over $110 pb yet our debt profile (FG) was still on the increase. What logical explanation can President NOI and her vice, Jonathan, give as to why we needed to borrow to pay salaries when oil sold at $75pb?

Edit:

For all those ignoramuses quoting me, here's what one of your favorite economists said yesterday :

He said the recession happened because the Goodluck Jonathan administration failed to save earnings from crude oil sale when there was unprecedented boom in oil prices.

“Poor ideas transcended over superior ideas, and we went into recession which was slightly avoidable. That is why academics must be alive to their responsibility of nudging us to reality. If you borrow at a time of boom, what will you do in a time of lack? Even my grandmother in the village knows this.

“At the same time, when we had boom, we had unprecedented unemployment".

Exactly what I was trying to explain. I'm not at all surprised at the responses I got. I know for a fact ignorant kids have overrun the forum and they are best as nothing but insults.

ayzTIGER:
No Hope for Nigeria. Is not time they lay this country 6ft beneath the earth

Itz about time
Only thieves wants the status quo
Where they loot and borrow with reckless abandon ,they will promise heaven on earth but once they get in... You find out
They are all the same

Dats wat Nigeria's want, for me I tink there is no hope for Nigeria until d youth rise and elect credible representatives not base on tribalism, nepotism and religion sentiment. Bubu has not finish wit d so called change, I wish him to come back and finish wat he has started.

Where are d zombies that said NO I was borrowing to pay salary. Now we can see that buhari has been borrowing for everything including feeding and projects, talk more of salary.

Dumb president

Wayward, hopeless and hypocritical humans. Politicians are useless. The enriched themselves with our common wealth and leave the country to die in high Dept.


APC where is the change you promised

When i see such things, to comment go just weak me.

KahlDrogo:
Despite the drastic fall in FG income sue to the near total collapse in oil prices at the international market, the FG still managed to check her borrowing, maintaining it at 3trillion in two years! That is absolutely commendable if you ask me.

The question therefore is, how did we end up owing as much as 8trillion under years of surplus earnings? He had oil selling at over $110 pb yet our debt profile (FG) was still on the increase. What logical explanation can President NOI and her vice, Jonathan, give as to why we needed to borrow to pay salaries when oil sold at $75pb?

SHUT UP! At least fuel was sold for 87naira. Now that fuel is sold for 145naira. Tell me why u av to borrow almost 8 trillion in 2years. Na wa poop. U can support rubbish o.

When Nigerians hear the word change in 2019:

ZombieTERROR:
By the time Buhari and his band of rogues are through with Nigeria ....
We can never come out of debt in three generations
People who know nothing about governance and economic management
All because they just want power and key to our treasury
Each time I hear that adeosun speak
I weep for Nigeria

You know some guys on nairaland are slowpoke. I said it sometimes ago that Kemi Adeosun is one of the most clueless person in APC government. They rained insult on me as if I killed their Grandpa

Buhari is a monumental failure

Where is Lalasticlala sef

What the hell , in just two years

ZombieTERROR:


Itz about time
Only thieves wants the status quo
Where they loot and borrow with reckless abandon ,they will promise heaven on earth but once they get in... You find out
They are all the same

Well, I can say they are almost the same.