The Federal Republic of Nigeria’s total public debt just rose by N3.32trillion in one year to N25.7trillion as at the end of June 2019. This news was announced by the Debt Management Office on Tuesday 15th October 2019. The Federal Government owed about N20.42trillion as of the 30th of June 2019, while all the 36 states including the Federal Capital Territory had a total debt portfolio of N5.28trillion.
The Debt Management Office said that the stock of the debt is made up of about N8.32trn ($27.16bn) which is an external debt and about N17.38trn which was borrowed for domestic use. All the nation’s public debt, which stood at about N22.38trn as at June 2018, has increased to N24.39trn in December 2018 and consequently, N24.95trn in March 2019.
Mrs. Zainab Ahmed who is the Minister of Finance, Budget and National Planning, explained that in August, “There was a lot of insensitivity around the level of our debt”.
She went further to restate that our debt is not too high, she made it known that what the country lack is a revenue problem and that the debt is still very much within a reasonable fiscal limit.
Mrs Zainab also compared Nigeria with other countries, saying that in terms of borrowing, Nigeria is still the least, stating that the country did not have any debt challenge but a challenge with generating sufficient and adequate revenue.