Nigeria’s debt climbs by N2.5tr in three months
By Jeph Ajobaju, Chief Copy Editor
Lawmakers have approved for President Muhammadu Buhari to obtain new loans worth $5.8 billion plus a $10 million grant from Germany – with strings attached – on top of the $92.626 billion debt Nigeria already racked up by Q3 2021.
Nigeria’s debt rose to N38.005 trillion or $92.626 billion in the third quarter of 2021 (Q3 2021), according to latest figures released by the Debt Management Office (DMO).
The sum includes total external and domestic debts of the federal and 36 state governments as well as the Federal Capital Territory (FCT).
Nigeria spent N1.8 trillion on debt servicing in the first five months of this year, 98 per cent of revenue, as total loans rose to $87.24 billion in Q1 2021 from $86.39 billion in Q4 2020.
Under Buhari, Nigeria’s debt had jumped by N20.8 trillion to N32.92 trillion between June 2015 and December 2020, and to N33.11 trillion in Q1 2021, all figures released by the DMO.
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Debt rises by N2.54tr in 3 months
The public debt rose by N2.540 trillion in three months from June to September 2021, the DMO explained in a statement on its website.
“The increase of N2.540 trillion when compared to the corresponding figure of N35.465 trillion at the end of Q2 2021 was largely accounted for by the USD4 billion Eurobonds issued by the Government in September 2021,” the statement said.
The issuance of the Eurobonds “has brought significant benefits to the economy by increasing the level of Nigeria’s External Reserves, thereby supporting the Naira Exchange Rate and providing the necessary capital to enable the Federal Government finance various projects in the Budget.
“The triple tranche USD4 billion Eurobond, issued in September 2021, was for the implementation of the New External Borrowing of USD6.18 billion in the 2021 Appropriation Act,”
Reps approve new $5.8b loans, $10m grant
TheNiche reports that the House of Representatives on Tuesday approved external loans of $5,803,364,553.50 and a grant component of $10,000,000 requested by Buhari.
The sources of the loans are
- The World Bank – $2,300,000,000
- German Consortium – $2,300,000,000
- Islamic Development Bank – $90,000,000
- China Eximbank – $786,382,967
- Bank of China – $276,981,586:50
- International Fund for Agricultural Development – $50,000,000.
The $10,000,000 grant is also expected from German Consortium.
The House asked that the terms and conditions of the loans be forwarded to the National Assembly “before the execution of the same for approval and proper documentation.”