Despite the growing economic hardship in the country, Nigeria’s debt rose by N1.31tn in one year, the Debt Management Office (DMO) has revealed.
According to the statistics released by DMO, the country’s total debt rose from N11.24tn as of December 31, 2014 to N12.6tn at the end of 2015 with a difference of N1.31tn, increasing by 12.1 per cent.
According to the report by Punch newspaper, the total debt is made up of the external debt of the federal and state governments, the domestic debts of the Federal Government as well as the domestic debts of the states.
External debts of both tiers of government rose from $9.71bn as of December 31, 2014 to $10.71bn as of December 31, 2015. This shows a rise of $1bn or growth rate of 10.37 per cent within the period.
The domestic debt of the Federal Government, which is the biggest component of the debt burden, rose from N7.9tn as of December 31, 2014 to N8.84tn in the 12-month period.
This shows that the domestic debt of the Federal Government rose by N932.97bn within the one-year period. It also means that the domestic debt of the Federal Government rose by 11.8 per cent.
The 36 states of the federation and the Federal Capital Territory held $3,369,911,154.54 of the country’s external debt component, while the Federal Government’s external commitments stood at $7,348,520,340.26.
With $1,207,900,597.65, Lagos remained the most externally indebted state of the federation as it held 35.84 per cent of the country’s subnational external debt.
The amount spent on servicing the domestic component of Nigeria’s total debt rose from N334.66bn in 2010 to N846.64bn by the end of December 2014.
The increase in the debt service obligation of the Federal Government showed an increase of N511.98bn within a period of five years. This means that in that time, the country’s domestic debt service obligation rose by 152.99 per cent.
The increase also reflected the rise in the size of the country’s domestic debt portfolio, which moved from N4.55tn in December 2010 to N7.9tn as of December 31, 2014, an increase of 73.63 per cent.
This means that while the domestic debt rose by 73.63 per cent within the period, the cost of servicing the debt rose by 152.99 per cent. Some of the debts that had fallen due within the period, however, might have been liquidated.
Meanwhile, Vice President, Prof Yemi Osinbajo has reiterated that the federal government will not spare persons indicted for corruption.
Mr Osinbajo who stated this yesterday, February 3 in Ogun state said corruption has ravaged the nation’s economy and threatening the government’s plan to put in place necessary infrastructure.