NIGERIA’S DEBT HITS N19TRN - DMO

The summation of both the foreign and local creditors of Nigeria's indebtedness now stands at N19.16tn, according to the latest figures from the Debt Management Bureau, DMO.

The figures show that the total debt was N12.06tn two months before President Muhammadu Buhari took power, which means that N7.1tn was hired under his regime. On the financial side, the federal government 's domestic debt is N11.97tn, up from N8.51trn at 31st March 2015.

Thus, within two years, the Buhari government borrowed a total of N3.46tn from domestic creditors, an increase of 40.71 per cent. Similarly, Nigeria's external debt (federal and state governments) rose from $ 9.46 billion to $ 13.8 billion.

This means that, in the two-year period, the country's external debt increased by $ 4.35 billion or 45.98%. According to the DMO, the official exchange rate of N306.35 to $ 1 was used to calculate the country's external debt for March 31, 2017, while the official rate of N197 to $ 1 was used to determine foreign debt By 31 March 2015.

The domestic debt component of the states was N2.96tn at 31 March 2017, up from N1.69bn at the same time in 2015.

This means that, within two years, the domestic debt of the States has increased by N1.27tn or by 75.15 per cent. Nigeria closed 2016 with a debt-to-GDP ratio of 18.6 percent. At the end of 2015, Nigeria's debt-to-GDP ratio was 12.1 per cent, according to the Bretton Wood institution.

Nigeria's GDP for the year ended December 31, 2016 was N67.98, according to the National Bureau of Statistics. Meanwhile, the World Bank asserts that global economic growth will increase to 2.7 per cent in 2017 as a result of a recovery in manufacturing and trade, an increase in market confidence and stabilization of commodity prices will resume growth in emerging and developing economies.

According to the World Bank's World Economic Outlook of June 2017, growth in advanced economies is expected to accelerate to 1.9 percent in 2017, which will also benefit ir trading partners. 

He noted that: "Global financing conditions remain favorable and commodity prices have stabilized, with growth in emerging markets and developing economies as a whole increasing to 4.1 per cent this year, From 3.5% in 2016.

"Growth among the seven largest emerging market economies in the world is expected to increase and surpass its long-term average by 2018. Recovery activity in these economies is expected to have significant positive growth effects in others Emerging and developing economies and globally.

"Nevertheless, significant risks are hurting the outlook, and new trade restrictions could lower the rebound in global trade, and persistent policy uncertainty could hamper confidence and investment. 

"In the context of exceptionally low volatility in financial markets, a sudden reassessment of the market for policy risks or the pace of normalization of monetary policy in the advanced economy could cause financial turmoil.

"In the longer term, persistent weakness and investment growth could erode the long-term growth prospects of emerging and developing economies that are essential to poverty reduction."