The Nigerian government has borrowed N7.1 trillion in the two years of the President Muhammad Buhari administration thereby increasing the country’s debt to local and international creditors to N19.16 trillion, data from the debt management office shows.
In 2017 alone the government has borrowed N1.8 trillion. As at March 2015 the country’s total debt stood at N12.06 trillion, the Punch is reporting.
Of the N19.16 trillion, N11.97 trillions is owed domestic creditors as opposed to the N8.5 trillion owed them two years ago.
Similarly, 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.
Following the fall in the prices of oil, the country’s main export, the government has increasingly depended on borrowing even to carry out routine responsibilities.
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Federal Government Borrowed N7.1 trillion in Two Years
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