Yo-yo: Nigeria’s external debt rises to $6.67 billion, domestic debt stock down to N6.493 trillion

by Ogunyemi Bukola

money-YNaija.jpg

Despite promises by the Federal Government to slash it, figures from the Debt Management Office show that Nigeria’s external debt profile rose by $143m in the first quarter of 2013 to $6.67bn from $6.527bn at the end of last year.

The total external debt rose consistently throughout 2012, from $5.91b on March 31, 2012, it rose to $6.03bn by June 31, 2012, rising higher to $6.3bn by September 31 before closing the year at $6.527bn.

While external debt was at $6.527bn as of December 31, 2012, the Federal Government’s domestic debt stock for same period was N6.537tn with FGN bonds accounting for 62.41 per cent (N4.08tn) of the figure, while Treasury Bills and Treasury Bonds accounted for 32.47 per cent (N2.12tn) and 5.12 per cent (N334.56bn), respectively

The latest data obtained from the DMO website shows that in one year, the country’s external debt rose by $758.32m, from $5.91b on March 31, 2012 to $6.67bn on March 31, 2013.

The Federal Government’s domestic debt stock however reduced from N6.537tn as of December 31, 2012 to N6.493tn as of March 31, 2013

A breakdown of the data, which was posted on the DMO website, indicates that FGN Bonds at N3.82tn now accounts for 58.84 per cent of the debt, while Treasury Bills (N2.34tn) and Treasury Bonds (N334bn) accounts for 36.01 per cent and 5.15 per cent of the amount, respectively.

Analysts have continued to warn that such high debt profile is not in the nation’s best interest.

In December 2012, at the Honorary International Investment Council Conference in London, Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi argued that if the existing level of borrowing from big nations continued, the huge debt profile would place “undue burden on posterity.”

“We are borrowing more money today at a higher interest rate, while leaving the heavy debt burden for our children and grandchildren,” he had said.

Speaking in Lagos in March this year, the Minister of State for Finance, Dr. Yerima Ngama, had said Nigeria would slash its domestic debt, which had been a source of concern for economists.

One comment

Leave a reply

Your email address will not be published. Required fields are marked *

cool good eh love2 cute confused notgood numb disgusting fail