Debt servicing gulps N5tr in five years, government pays N446b to creditors in 2016
The Director General of Debt Management Office (DMO), Dr. Abraham Nwankwo.
Nigeria has in the past five years paid $25.220 billion (an estimated N5 trillion based on the old fixed exchange rate) in repayment of loans and service charges within the period of 2011 to 2015.
The 2015 Annual Report of the Debt Management Office (DMO) just released and obtained by The Guardian yesterday indicated that this year alone, even in the face of cash crunch when the Federal Ministry of Finance is yet to make any quarterly release in implementing the 2016 budget, N446 billion has already being paid out to creditors in debt servicing
Nigeria’s current public debt, according to the report stands at N8.837 trillion for the domestic component and $10.718 billion for the foreign stock.
A breakdown of debt servicing in the last five years indicated that the sum of $3.781 billion was used to service debt in 2011, $4.918 billion for 2012 and $5,520 billion in 2013. For the 2014 and last year, the sum of $5.500 billion and $5.499 billion respectively were paid out.
Dwelling on the domestic debt servicing pay out in 2014 and last year, Director General of DMO, Dr. Abraham Nwankwo reported that the Federal Government spent a total of N1.88 trillion.
Furthermore, the debt service payment showed that Nigeria spent N25billion on repayment of principal and N993.13 billion on interest repayment in 2015.
The report said, “The FGN’s domestic debt service as at the end of December, 2015, amounted to N1, 018.13 billion compared to N865.81 billion in the corresponding period of 2014, representing an increase of N152.32 billion or 17.59 per cent.
“This amount comprised principal repayment of N25 billion and interest payment of N993.13 billion. By instrument-type, FGN bonds debt service accounted for 62.41 per cent of the total debt service payment, while payments in respect of the Nigerian Treasury Bills and Treasury Bonds were 31.83 and 5.76 per cent, respectively.
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1 Comments
Thank you Baba Buhari and Pastor Osinbajo for once again coming to the rescue of these Oliver Twist states of Nigeria in the interest of the suffering workers and people. Your milk of human kindness will not run dry and mercy will not depart from your family. Again Lagos state is not cap-in-hand because Governor Ambode is merciful to its workers and retirees, like the Federal Government.
As for those jeun-ko-ku (chop-and-quench) state governors-not all the state governors are like that, the day of reckoning is at hand. The EFCC should investigate their private accounts and those of their family and friends not only in Nigeria but also in Britain, America, Cayman Islands, Panama, Dubai, Switzerland, Malaysia etc. to trace what they have done with previous allocations, some of which the Federal Government had to borrow with interest to allocate to these states. No wonder Cameron said Nigeria is FANTASTICALLY corrupt. They better repent now and return their loot, for everyday is for the thief, but ONLY one is for the owner – the people of Nigeria. Behold, the day of the owner is near for these oppressors. Their wickedness will locate them and the people shall sing in the streets –
“RUN Pressor man where you gonna run to?
Run pressor man where you gonna run to? (twice)
All on that day……..
You gonna run to the Sea (Britain, Switzerland), the sea will reject you
You will run to the air (America) the air will eject you
You gonna run to the land (Dubai, Malaysia, Panama), the land will burn you
All on that day.”
We will review and take appropriate action.