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LequteMan
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According to the Director-General of the Debt Management Office (DMO), Dr. Abraham Nwankwo, Nigeria's external and local debts have risen to N12 trillion ($65 billion).
He however said the country was not at risk and that there was no cause for alarm, saying the debt ratio to Nigeria’s Gross Domestic Product (GDP) was still 13 per cent.
Giving a breakdown, he said about 86 per cent of the debt was domestic while the other 14 was external. He added that the 36 states owed about 33 per cent of the external debt and 16 per cent of the domestic debt. He said the other percentage was owed by the federal government.
“This is coming at a time that the country is going through a difficult time. Nigeria’s debt ratio to the GDP is about 13 per cent. As at the end of December 2015, the debt profile of Nigeria stood at N12 trillion. In dollar equivalence, it stood at $65 billion. This includes both local and foreign debts. It also includes that of the state and federal governments. About 86 per cent of Nigeria’s current debt is domestic.
“After the debt cancellation between 2005 and 2006, government came up with a policy that borrowings should be done domestically in order not to put all our eggs in one basket. That will enable us to borrow outside when there is a rainy day.”
The Sun
He however said the country was not at risk and that there was no cause for alarm, saying the debt ratio to Nigeria’s Gross Domestic Product (GDP) was still 13 per cent.
Giving a breakdown, he said about 86 per cent of the debt was domestic while the other 14 was external. He added that the 36 states owed about 33 per cent of the external debt and 16 per cent of the domestic debt. He said the other percentage was owed by the federal government.
“This is coming at a time that the country is going through a difficult time. Nigeria’s debt ratio to the GDP is about 13 per cent. As at the end of December 2015, the debt profile of Nigeria stood at N12 trillion. In dollar equivalence, it stood at $65 billion. This includes both local and foreign debts. It also includes that of the state and federal governments. About 86 per cent of Nigeria’s current debt is domestic.
“After the debt cancellation between 2005 and 2006, government came up with a policy that borrowings should be done domestically in order not to put all our eggs in one basket. That will enable us to borrow outside when there is a rainy day.”
The Sun
