September 25, 2022

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Members of the House of Representatives lament that Nigeria’s debt hits an all-time high of N42.84 billion

Members of the House of Representatives lament that Nigeria’s debt hits an all-time high of N42.84 billion

Members of the House of Representatives have expressed concern over Nigeria’s rising debt profile, which currently stands at N42.84 trillion.

A breakdown of debt figures released by the DMO Debt Management Office shows that the bulk of federal government borrowing has been done domestically, with 72.53% being FGN bonds. According to the DMO, Nigeria’s total public debt stock, comprising debts of the federal government, state governments and the Federal Capital Territory (FCT), increased by 1.24 trillion naira in three months, increasing from 41.60 trillion naira ($100.07 billion) by March 30, 2022 to 42.84 trillion naira ($103.31 billion) by June 30, 2022.

The DMO also reported that outstanding domestic debt for the reporting period stood at 26.23 trillion naira ($63.24 billion) due to new borrowing by the federal government to partly finance the deficit of the Appropriation Act 2022 (Repeal and Enactment), including new borrowings. by state governments and the FCT.

According to the DMO, Lagos State retained its top spot as the state with the highest debt stock with N797, 305,312,602.53 in its debt profile. Delta State is second with N378,878,236,830.75, followed by Ogun State with N241,782,021,304.96; Rivers State, N225, 505011356.83; and Imo State, N210, 394,836,519.93.

Akwa Ibom was next on the debtor scale with N203, 951,611,822.07, while Jigawa maintained its least indebted state profile with 45,135,377,621.30, and Ebonyi State followed with N59 , 111,939,636.77.

Reacting to this development, Gbajabiamilia, when the plenary resumed yesterday, expressed concern over the country’s growing debt profile and the theft of crude oil.

Gbajabiamila said concerns emerged from interactive sessions of the Senate and House Finance Committees with Government Ministries, Departments and Agencies (MDAs) on the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/ PSF). He said the problems arose when considering the scope of deficit financing to be proposed in the new budget and the drop in crude oil production due to theft and sabotage.

Gbajabiamila said that while the House appreciates that current fiscal conditions have necessitated borrowing to finance fiscal spending, there are concerns about the long-term effect of the debt burden on the country and the ability to pay de responsible and sustainable way.

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