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Nigeria Debt on the Increase by N32.2tn

by Greatjobnew

Nigeria Debt on the Increase by N32.2tn

Nigeria Debt on the Increase by N32.2tn

Nigerian’s public debt is on the rise which has been recorded to hit a total of N32.2tn at the end of September 2020, the debt Management office announced on Thursday.

The figure hint at the nation’s debt profile rose by N1.19tn between the second and third quarters of 2020.

The breakdown provided by DMO on its website, that the Federal Government’s total debt stood at N28tn as of September record 2020 while the state and federal Capital Territory is at N4.19tn

Further disaggregation of Nigeria’s public debt showed that the domestic debt is N20tn or 62.18 percent of the total debt while foreign debt is 37.82 percent.

In dollar terms, Nigeria’s total debt is $84.57bn.

“The Minister of Finance, Budget and National Planning, Zainab Ahmed, had said last month that Nigeria’s total public debt may rise further by N6tn, hitting N38.68tn by December 2021.

She told the Senate Committee on Local and Foreign Debts that the projection was based on existing approvals.”

There has been rising concern by experts  over the country’s rising debt stock as the federal government plans to fund the 2021 budget deficit with N4,28tn an additional borrowing which is about one-third of the N13.59th budget signed by the president, Major General Muhamudu Buhari(retd),

Nigeria Debt on the Increase by N32.2tn

An analytical brake down of the approved budget figures shows N3.3bn would be spent on debt servicing.

The country’s debt profile as at 2015 end of June was N12.12tn, a month after  Buhari came to power.

“The new figure released by DMO means that Nigeria’s debt since Buhari took over in 2015 has risen by N20.08tn in five years”.

With the financial debt analysis carried out, it implies that the country’s debt profile rose by 165 percent within three months.

https://greatjobnew.com/2020/12/19/10-reasons-why-the-giant-of-africa-is-distracted/

from the perspective of macro-economic theory, a government debt to fund expenditures should have a positive impact on economic growth, if the expenditures are utilized on productive sectors such as healthcare, education, and nutrition.

From increased debt incurred by the country is there any guaranty of sustainable economic development In Nigeria with the common trend of corrupt practices in the country?

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