Breaking!!! Nigeria's debt profile hits N16.3 trillion
following a report that Nigeria’s debt burden increased by
about N4 trillion in the last six months.
This amount, it is believed, could hinder the country from
effectively securing more loans from foreign organisations
for the implementation of the budget.
President Buhari with some Nigerian governor
Quoting a report released by the Debt Management Office
(DMO) on Tuesday, September 20, 2016, The Cable reports
that the country’s debt profile as at June 30, 2016, stands
at N16.3 trillion up from N12.6 trillion at the end of 2015.
Breaking it down, the report said the states and the federal
government owed N3.19 trillion in external debt while the
domestic debt incurred by the federal government stood at
N10.61 trillion.
The report puts the domestic debts taken by state
governments at N2.5 trillion, with Lagos, Delta, Cross River,
and the Federal Capital Territory topping the list.
The report however explained that the rise in debt does not
really mean that the state and federal governments made
more borrowing, but that the previous debt profile was
affected by the slide in the value of the naira.
To buttress the point, it said the debt, in dollar terms,
declined from $65.43 billion in 2015 to $61.45 billion in
2016, adding that as at the end of 2015, the debt, in dollar
terms, stood at 13.02 percent of the country’s gross
domestic product (GDP) while in 2016, it rose to 16.83
percent, based on 2015 GDP figures.
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