Politics

Nigeria’s debt increased by N18.89trillion under President Buhari

President Muhammadu Buhari

The Debt Management Office (DMO) of Wednesday announced that the nation’s public debt is a total of N31.01trillion as at the end of June.

As of June 2015, just a month after President Muhammadu Buhari took over power from ex-President Goodluck Jonathan, Nigeria’s debt was N12.12trillion. Over the last five years under the administration of President Buhari, the country’s debt rose by N18.89trillion (a 155.86% increase within five years).

These debt includes debt of the Federal Government, the 36 states of the Federation and the Federal Capital Territory (FCT). The FG debt is about N24.52trillion.

“The data show that in naira terms, the total public debt stock which comprises the debt stock of the Federal Government, the 36 state governments and the FCT stood at N31.009tn or $85.897bn.

“The corresponding figures for March 31, 2020 were N28.628tn or $79.303bn,” the statement by the DMO reads in part.

The DMO further noted that the increase in the debt stock by N2.381trillion ($6.59billion) was due to the $3.36billion budget support loan received from the International Monetary Fund (IMF) and other domestic borrowing to finance the revised 2020 Appropriation Act.

“The DMO expects the public debt stock to grow as the balance of the new domestic borrowing is raised and expected disbursements are made by the World Bank, African Development Bank and the Islamic Development Bank which were arranged to finance the 2020 Budget.

“Recall that the 2020 Appropriation Act had to be revised in the face of the adverse and severe impact of COVID-19 on government’s revenues and increased expenditure needs on health and economic stimulus, among others.”

External debt is at N11.36trillion (36.65%), while domestic debt stood at N19.65trillion (63.35%).

The FG external debt is N9.82trillion, while the external debts of states and the FCT is N1.54trillion.

The domestic debt of the FG is N15.46trillion, while the domestic debts of states and the FCT is N4.19trillion.

The FG holds 81.52% of the nation’s total public debt, while states and FCT hold 18.48%.

In the first six months of 2020, Nigeria spent N921.93billion on domestic debt servicing. N251.35bn was paid on domestic debt servicing in January; N158.12bn in February; N199.66bn in March; N228.32bn in April; N37.87bn in May and N46.61bn in June.

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