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LequteMan
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Nigeria – The Debt Management Office has calmed nerves concerning Nigeria’s rising debt profile, saying there is no cause for alarm, according to Vanguard.
Nigeria’s total public debt stock, external and domestic, as at December 2014, stood at about $67.73 billion or N11.2 trillion, which is about N1.2 trillion higher than the 2013 figure of N10.04 trillion. A breakdown of the figures showed that external debt, including those of the states, was $9.71 billion or N1.63 trillion.
As at December 2013, the total stock of external debt was $8.821 billion indicating a rise of $556 million in the first half of 2014. But as at December 31, 2012, Federal Government’s external debt was $4.14 billion as against a total debt stock of both federal and state governments of $6.5 billion.
The DMO says the Federal Government debt is sustainable as its debt sustainability analysis showed that the debt/GDP ratio was only 2.4 per cent.
The bulk of the Federal Government loans were concessionary with low interests and long moratorium, it added.
Based on the rising debt profiles of state governments, the Federal Government last year directed banks not to grant fresh loans to state governments until they got the relevant approval and clearance from the Federal Ministry of Finance.
The Federal Government had defended its decision to dissuade banks from granting unsecured loans to state governments, saying it was to protect the states from excessive accumulation of debts.
#Nigeria #DMO #Debt #GDP
Nigeria’s total public debt stock, external and domestic, as at December 2014, stood at about $67.73 billion or N11.2 trillion, which is about N1.2 trillion higher than the 2013 figure of N10.04 trillion. A breakdown of the figures showed that external debt, including those of the states, was $9.71 billion or N1.63 trillion.
As at December 2013, the total stock of external debt was $8.821 billion indicating a rise of $556 million in the first half of 2014. But as at December 31, 2012, Federal Government’s external debt was $4.14 billion as against a total debt stock of both federal and state governments of $6.5 billion.
The DMO says the Federal Government debt is sustainable as its debt sustainability analysis showed that the debt/GDP ratio was only 2.4 per cent.
The bulk of the Federal Government loans were concessionary with low interests and long moratorium, it added.
Based on the rising debt profiles of state governments, the Federal Government last year directed banks not to grant fresh loans to state governments until they got the relevant approval and clearance from the Federal Ministry of Finance.
The Federal Government had defended its decision to dissuade banks from granting unsecured loans to state governments, saying it was to protect the states from excessive accumulation of debts.
#Nigeria #DMO #Debt #GDP
