UPDATE! Nigeria's Debt Rises By N7.1tn In Two Years -See Details

[1] 2
at 11:35 AM, 6/06/2017 (11 months ago)
(5886 | Gistmaniac) (f)

According to Naijapals has shown that 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.
kswagger at 11:58 AM, 6/06/2017 (11 months ago)
(467 | Upcoming) (m)
Where is Dangote?

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Mykie010 at 12:14 PM, 6/06/2017 (11 months ago)
(6133 | Gistmaniac) (m)
Buhari buhari buhari,that moment when an illiterate is ur president, we might hit 20 trillion by the time he completes his tenure
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starzx at 12:52 PM, 6/06/2017 (11 months ago)
(701 | Upcoming) (f)
SO ON WHT DID THEY ACCUMULATE ALL THIS DEBT? WE ARE STILL HVING TOTAL BLACKOUTS IN THE ENTIRE COUNTRY, NO GUD ROADS, FUEL PRICE INCREASES EVERY DAY, NO GUD HOSPITALS , GOVERNMENT UNIVERSITIES IN A MESS, SO WHO ACCUMULATED ALL THIS DEBT AND HOW. SANGO WILL ASK U PEOPLE VERY SOON.
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freethinker at 12:56 PM, 6/06/2017 (11 months ago)
(5169 | Gistmaniac) (m)
WHAT DO ONE EXPECT WHEN BUHARI APPOINTED A POLYTECHNIC AS MINISTER OF FINANCE?
THE ONLY THING SHE KNOW IS TO SPEAK BIG GRAMMER, SHE HAS NOTHING ELSE
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crocatum at 01:20 PM, 6/06/2017 (11 months ago)
(3253 | Gistmaniac) (m)
and then they say let us sacrifice, are they very stupid.
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Jeonleon at 01:57 PM, 6/06/2017 (11 months ago)
(780 | Upcoming) (m)
I read this from another site this morning, and I'm still in shock over it....  I mean, how can we borrow N7tr in 2yrs!!! And I haven't felt the impact?! Preceding govts borrowed N12tr cumulatively, and only one borrows N7tr?!
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ruthie at 02:02 PM, 6/06/2017 (11 months ago)
(16415 | Hero) (f)
HA! ALL OUR UNBORN GENERATIONS ARE IN TROUBLE!
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chukkychukky at 02:11 PM, 6/06/2017 (11 months ago)
(6662 | Gistmaniac) (m)
una see zoo wey una dey live, wen una hear biafra na una go dey talk rubbish
Reply
tuscanT at 03:57 PM, 6/06/2017 (11 months ago)
(209 | Upcoming) (m)
Quote from: chukkychukky on 02:11 PM,  6/06/2017
una see zoo wey una dey live, wen una hear biafra na una go dey talk rubbish
When IPOB hear the name Buhari una red button go activate  and start spewing  out rubbish. U belong to the zoo. Can you name any of the developed country that is in debt.just Google America or Uk debt then answer ur self. Just take sometime to read about south Sudan after they breakaway even far more worst is waiting for IPOB  when u breakaway mark my word b cos u guys will do anything for money
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morgan1 at 05:20 PM, 6/06/2017 (11 months ago)
(10622 | Hero) (m)
Say what?Huh?
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benosky4 at 05:28 PM, 6/06/2017 (11 months ago)
(4871 | Gistmaniac) (m)
Buhari govt is a scam, N-power is not job but scam.

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jonik at 05:32 PM, 6/06/2017 (11 months ago)
(27 | Newbie) (m)
Quote from: Mykie010 on 12:14 PM,  6/06/2017
Buhari buhari buhari,that moment when an illiterate is ur president, we might hit 20 trillion by the time he completes his tenure

We might or we're almost there
7.1t in 2yrs and he has 2 more yrs to
I'm looking at 29t before he lives
Reply
schmit at 05:51 PM, 6/06/2017 (11 months ago)
(11848 | Hero) (f)
Aibegggggg
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HUMANresurce at 08:14 PM, 6/06/2017 (11 months ago)
(790 | Upcoming) (m)
SAI BABA.. BUHARI IS TRYING..
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willyking at 11:20 PM, 6/06/2017 (11 months ago)
(1643 | Gistmaniac) (m)
Una go hear ram, sai  baba!!
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jp-free at 04:51 AM, 7/06/2017 (11 months ago)
(555 | Upcoming) (m)
Quote from: tuscanT on 03:57 PM,  6/06/2017
When IPOB hear the name Buhari una red button go activate  and start spewing  out rubbish. U belong to the zoo. Can you name any of the developed country that is in debt.just Google America or Uk debt then answer ur self. Just take sometime to read about south Sudan after they breakaway even far more worst is waiting for IPOB  when u breakaway mark my word b cos u guys will do anything for money
Talking of Biafra, when you can't even draw the map,
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jp-free at 04:55 AM, 7/06/2017 (11 months ago)
(555 | Upcoming) (m)
N7.1tn in two year+ N7.tn in another two years in advance... Grin Grin Grin Grin Grin Grin
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BournIdentity at 11:21 AM, 7/06/2017 (11 months ago)
(46340 | Addicted Hero) (m)
See wetin GEJ don cos.., we just dey observe
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BournIdentity at 11:55 AM, 7/06/2017 (11 months ago)
(46340 | Addicted Hero) (m)
Roll Eyes                                                                          
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