The has said that the nation’s total indebtedness to foreign and local creditors stands at N19.16tn. As of March 31, 2015, it stood at N12.06tn , then rose to N17.36tn at the end of December 2016. This connotes a debt level increase of N7.1tn in two years.
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.
- The federal and state governments external debts rose by 45.98% –from $9.46bn to $13.81bn.
- 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.
- The domestic debt of the states rose by N1.27tn or 75.15 per cent.
According to the Bretton Wood institution, Nigeria 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%. 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.
The had also recently said that the country’s current indebtedness would have reached 23.3 per cent of the GDP by the end of 2017, projecting that it would climb to 24.1 per cent of the nation’s Gross Domestic Product by 2018.
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.
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