Nigeria’s total debt profile rises to N17.4trn from N2tn in 2015

Nigeria’s total debt profile office has risen to N17.36 trillion or $57.39 billion as at December 31, 2016, according to the Debt Management Office (DMO).

The debt profile stood at N2.03trn ($10.32bn) as at the end of June 2015, according to record.

The total figure of debt now owed by Nigeria amount to 500 per cent increase as disclosed by the Director General of the DMO, Dr. Abraham Nwankwo, during the budget defence session by his office before the Senate Committee on Foreign and Local Debts.

The DMO DG said the total debt profile of the country,comprising of both local and foreign debts, has been on the increase since July 2015 due to prevailing economic challenges at hand for both the federal and state government.

He said while the federal government domestic debt stock as at December 31, 2015 was N8.84trn, it rose to N11.06trn as at December 2016.

Nwankwo also explained that the total debt profile of $57.39bn is made up of external debt stock of $11.41billion (N3.48trn and domestic debt stock of $45.98bn (N13.88trillion).

According to him, the debt owed by the 36 states of the federation and the Federal Capital Territory (FCT) accounted for about 32.45 per cent and the federal government accounting for the remaining 67.55 per cent.

Chairman of the committee, Senator Shehu Sani (APC Kaduna Central), had, however, asked the DMO D-G why the federal government has not sought for debt relief from the creditors as once did.

Nwankwo in response, expressed confidence that the Nigeria economy was still strong despite the debt overhang, where as his response angered members of the Committee.

The DMO boss said, “In our humble view, Nigeria is not in a position to beg for debt forgiveness. Nigeria is still a very strong economy. We have some challenges; but, Nigeria has not reached a stage that it needs to beg for debt
forgiveness. We are not in that position, sir”, he said.

Angered by the DMO DG’s response, Senator Shehu Sani accused him of being careless and insensitive to the plights of ordinary Nigerians with his stance against seeking for debt relief.

He said: “It is shocking that in 2006, people found it easier to feed their families and pay the fees of their children and rents. Now, things are in a very bad shape. But you’re speaking not typical of somebody, who lives with the people but like somebody who is speaking from an‘expert’ point of view.

“You said we are not in a bad position to ask for debt forgiveness. If you are talking from the point of how our people live nowadays, you would not be able
to say such things. But you are speaking naturally as an expert. The question we are putting to you is that, when we went round the world seeking for debt forgiveness, were we in a situation that was worse than this?”

Responding, Nwankwo insisted that the questions asked “are bigger than public debt management.” He explained that he had made a recommendation on how the economy could be turned around by raising the infrastructure deficit.

He added, “Beyond that, I don’t think I have the mandate and I don’t want to presume that I have the capability to come here and pontificate on how all the problems of Nigeria can be resolved because that is not my mandate. And I will be very presumptuous to be saying that.”