The federal republic of Nigeria currently owes N19.16 trillion to its foreign and local creditors, the Debt Management Office has revealed.
Documents show that the total debt was N12.06 trillion before President Buhari took over which means over N7 trillion was added within 2 years of Buhari’s tenure.The Federal government’s domestic debt currently stands at N11.9 trillion which is up from N8.5 trillion as at March 31, 2015.
Similarly, Nigeria’s external debt (federal and state governments) rose from $9.46bn to $13.81bn.This means that within Buhari’s two-year period, the country’s external debt rose by $4.35bn.
The DMO further disclosed that the official exchange rate of N306 to a dollar was used in calculating the country’s external debt for March 31st, 2017 and the official rate of N197 to a dollar was used in determining the foreign debt for March 31st, 2015.
The domestic debt component of States currently stands at N2.96tn as of March 31, 2017, up from the figure of N1.69bn in 2015.This means that within the period of two years, the domestic debt of the states rose by N1.27tn or 75.15 per cent.
Nigeria closed 2016 with a debt to GDP ratio of 18.6 percent. By the end of 2015, Nigeria’s debt to GDP ratio stood at 12.1 per cent, according to the Bretton Wood institution.Nigeria’s GDP for the year ended December 31, 2016, stood at N67.98tn, according to the National Bureau of Statistics.
Meanwhile, the World Bank says that global economic growth will strengthen to 2.7 percent in 2017 as a pickup in manufacturing and trade, rising market confidence, and stabilising commodity prices allow growth to resume in a commodity-exporting emerging market and developing economies.