NIGERIA’S DEBT HITS N7.93 TRILLION

                                                 


The nation’s appetite for borrowing to finance critical development projects has been growing in recent times with both the domestic and foreign indebtedness rising by $13.91bn in the last two years, EVEREST AMAEFULE writes
The country currently owes local and international creditors a total of $50.91bn (about N7.93tn), the Debt Management Office has said.Statistics obtained from the DMO website showed that as of June 30, 2013, the nation’s external debt stood at $6.92bn (about N1.08tn), while the domestic debt component stood at N6.85tn ($43.99bn).
The external debt component comprises debts owed by both the Federal Government and the 36 states of the federation and the Federal Capital Territory.However, the domestic debt of $43.99bn is owed by the Federal Government alone. The domestic debt of the states could not be obtained as at press time.
By June 2011, the total debt of the country stood at $37bn. This means that in the last two years, the debt stock had risen by $13.91bn. This shows a growth rate of 37.59 per cent.In terms of instruments, FGN Bonds accounted for N4.03tn or 58.87 per cent of the Federal Government’s domestic debt stock as of June.Nigerian Treasury Bills accounted for N2.48tn or 36.25 per cent of the domestic debt component of the Federal Government.
          -Naijalog.com