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HomeTop NewsBuhari govt borrows $22.5 bln, N6.08 trln in six years as PDP...

Buhari govt borrows $22.5 bln, N6.08 trln in six years as PDP kicks

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…States, FCT borrow N2.43 trln in six years

By Oludare Mayowa

Nigeria under President Mohammadu Buhari’s administration has borrowed a total of $22.54 billion in foreign debt since its inception in 2015 and accumulated a total of N6.08 trillion in domestic debt.

According to data collated from the Debt Management Office (DMO), Nigeria’s external debt stood at $32.85 billion as of the end of March 2021 compared with $10.31 billion inherited from the previous administration as of June 2015.

Also, the country’s Domestic debt owed by the federal government stood at N10.43 trillion as of June 2015, the debt rose to N16.51 trillion at the end of March 2021.

The 36 States of the federation also increase their debt profile by N2.43 trillion from N1.69 trillion in June 2015 to N4.12 trillion by the end of March 2021.

As of the time, President Buhari assumed power on May 29, 2015, Nigeria’s Eurobond debt was $1.5 billion, borrowing from China stood at $1.38 billion, owed $6.09 billion to the World Bank and no debt owed the International Monetary Fund (IMF).

However, today the country owed China a cumulative $3.40 billion, $11.41 billion to the World Bank and $3.47 billion to the IMF.

This was against the backdrop of the position of the main opposition Peoples Democratic Party (PDP) governors that the debt situation could plunge the country into bankruptcy.

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On Monday, PDP) governors blamed the country’s worsening debt profile on frivolous borrowings by the Federal Government.

The opposition governors alleged that over 80 percent of appropriation is spent on debt servicing which is “economically damaging”, adding that the gains of debt exit and cancellation during the Obasanjo administration had been destroyed.

“Money should only be borrowed for productive purposes as Nigeria’s current debt of over N36 trillion is becoming unsustainable relative to our earnings and GDP.

“We should not saddle incoming generations with undue debt burden. The borrowing spree of the APC administration if unchecked will certainly lead Nigeria into avoidable bankruptcy,” the main opposition party’s governors said at the end of their meeting.

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