• Latest
  • Trending
$33.5bn External Debts: Each Nigerian Owes Foreign Creditors N64,684

$33.5bn External Debts: Each Nigerian Owes Foreign Creditors N64,684

October 12, 2021
PHOTO NEWS: APC Presidential Candidate Tinubu Arrives Abeokuta, In Closed-door Meeting With Ex-President Obasanjo

PHOTO NEWS: APC Presidential Candidate Tinubu Arrives Abeokuta, In Closed-door Meeting With Ex-President Obasanjo

August 17, 2022
Arewa targets 1.5m votes for Tinubu

Arewa targets 1.5m votes for Tinubu

August 17, 2022
We’re consulting, mobilising support for Tinubu in South East — Uzodinma

We’re consulting, mobilising support for Tinubu in South East — Uzodinma

August 17, 2022
Nigerians Tired of Wike and Atiku Dispute – Ohuabunwa

Nigerians Tired of Wike and Atiku Dispute – Ohuabunwa

August 17, 2022
Stop Carrying Rumors Up And Down Go home and  work for PDP to Win- Wike Caution PDP leaders .

Stop Carrying Rumors Up And Down Go home and work for PDP to Win- Wike Caution PDP leaders .

August 17, 2022
Prince Audu Political Family Congratulates Faleke On His Appointment As APC PCC Secretary

Prince Audu Political Family Congratulates Faleke On His Appointment As APC PCC Secretary

August 16, 2022
Just In: Ex Kogi Gov,Idris to Commission Project In Rivers

Just In: Ex Kogi Gov,Idris to Commission Project In Rivers

August 16, 2022
We Can Borrow Till Eternity, Loans Are Source Of Infrastructures – APC Chairman, Adamu

We Can Borrow Till Eternity, Loans Are Source Of Infrastructures – APC Chairman, Adamu

August 16, 2022
2023: Tinubu Invites Shekarau To A Closed Door Meeting

2023: Tinubu Invites Shekarau To A Closed Door Meeting

August 16, 2022
Kano DPO  rejection  of $200,000 bribe, IGP reacts.

Kano DPO rejection of $200,000 bribe, IGP reacts.

August 16, 2022
JUST IN: APC National Chairman, Adamu Adamu To Be Replaced With Christian Over Muslim-Muslim Ticket

JUST IN: APC National Chairman, Adamu Adamu To Be Replaced With Christian Over Muslim-Muslim Ticket

August 16, 2022
PDP’s Responsible  ASUU’s Ongoing Strike – Keyamo

PDP’s Responsible ASUU’s Ongoing Strike – Keyamo

August 16, 2022
ADVERTISEMENT
  • Contact
  • Africa
  • Coronavirus
  • Documentaries
  • Local news
  • News
Thursday, August 18, 2022
22 °c
Abuja
Fri
Sat
Sun
Mon
  • Login
Observer Times
  • Home
  • Politics
  • Business
  • Nation
  • Opinion
  • Crime
  • Entertainment
  • Inside Story
  • Sports
  • Tech
  • World
No Result
View All Result
  • Home
  • Politics
  • Business
  • Nation
  • Opinion
  • Crime
  • Entertainment
  • Inside Story
  • Sports
  • Tech
  • World
No Result
View All Result
Observers Times
No Result
View All Result
Home Featured

$33.5bn External Debts: Each Nigerian Owes Foreign Creditors N64,684

admin by admin
October 12, 2021
in Featured
0
$33.5bn External Debts: Each Nigerian Owes Foreign Creditors N64,684
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

With the present level of Nigeria’s external debt, every Nigerian citizen in the country is currently indebted to the tune of $157 or N64,684.

This trend, according to a development economist, Dr. Tayo Bello, is worrisome as the borrowing rate is alarming and does not reflect in physical infrastructure that can repay the loans.

RELATED POSTS

PHOTO NEWS: APC Presidential Candidate Tinubu Arrives Abeokuta, In Closed-door Meeting With Ex-President Obasanjo

Nigerians Tired of Wike and Atiku Dispute – Ohuabunwa

Trending
Catholics Slam Lalong, Demand Apology Over Pope Comment

As of June 30, 2021, the country’s external obligations stood at $33.468 billion, according to the Debt Management Office.

Nigeria’s current population as of Saturday, October 9, 2021, based on Worldometer’s elaboration of the latest United Nations data, stands at 212,599,044, and when the country’s debt is equally divided, each person, old and young, male and female, is owing external entities $157.42 or N64,684 each.

This is as the country is looking at borrowing another N6 trillion to fund the N16 trillion spending for next year.

The country’s external borrowings have been on the increase in recent times, with the country’s external debt rising by $120.84 million between January and June this year.

Dr. Bello said: “The problem with Nigeria is that the borrowed fund is not commensurate with the availability of revenue, both inflow and outflow, and does not reflect in infrastructure that can repay the loans. It is a garbage in, garbage out situation.”

He alleged that some persons steal the money that is borrowed and expressed worry over taking loans to fund a railway line leading to Niger Republic for the sheer reason that Nigeriens are President Muhammadu Buhari’s cousins.

“The problem with the external loan is that we are going to repay the loan in dollars, both the principal and interest. If the loan is expended on things that can repay the debts, there is no problem with that, but there is a problem with borrowing to pay salaries,” he said.

As of December 31, 2020, the country’s total external obligations stood at $33.348 billion but it had risen to $33.468 billion by the end of June. This is aside from the Eurobonds that have been raised afterwards.

Last month, the federal government through the DMO raised $4 billion through Eurobonds. Although it initially planned to raise $3 billion, it raised an additional $1 billion as the bond offer was oversubscribed to the tune of $12.2 billion.

Much of the debt is owed to the International Development Association (IDA) which is an arm of the World Bank. Nigeria’s obligation to the IDA currently stands at $11.62 billion. The country also has a $10.37 billion Eurobond obligation.

It also owes $3.5 billion to the International Monetary Fund and another $3.48 billion to EXIM Bank of China.

Meanwhile, the country has spent N2.88 trillion to service its debt this year with $1.302 billion spent between January and June this year to service its external obligations.

The minister of finance, budget and national planning, Mrs Zainab Ahmed, disclosed this during the public presentation and breakdown of the highlights of the 2022 appropriation bill held in Abuja last Friday.

According to her, in the first seven months of the year, total expenditure made by the government stood at N8.14 trillion out of which N2.88 trillion was utilised for debt servicing, N2.75 trillion was spent on overhead cost, while N1.75 trillion was expended on capital projects.

Analysts at Cowry Assets Management Limited, commenting on the country’s indebtedness, noted that “much of the country’s rising debt appears to have been spent on recurrent expenditure and abandoned capital projects rather than infrastructural projects that would ease business operations and catalyse profitability that would, in turn, yield higher income via taxation for the government; hence, the imbalance between the physical infrastructure and the huge debts so far.

“Thus, we therefore expect the federal government to tie each tranche of loan to a particular capital project as exhibited with its Sukuk loans which have been more effective in delivering infrastructure.”

The federal government has consistently insisted that its borrowing was within acceptable limits, in terms of debt-to-GDP, but after it was revealed that Nigeria spent 97 per cent of its national income to service the debts in year 2020 (according to BudgIT), many are asking the government to look at the situation in terms of debt-to-revenue rather than debt-to-GDP; after all, it is revenue that pays debts, not GDP.

Credit to Leadership Newspaper

Related

SendShareTweetSend
ADVERTISEMENT
admin

admin

Related Posts

PHOTO NEWS: APC Presidential Candidate Tinubu Arrives Abeokuta, In Closed-door Meeting With Ex-President Obasanjo

PHOTO NEWS: APC Presidential Candidate Tinubu Arrives Abeokuta, In Closed-door Meeting With Ex-President Obasanjo

by admin
August 17, 2022
0

  Presidential candidate of the All Progressives Congress (APC), Asiwaju Bola Ahmed Tinubu, arrives Abeokuta to meet with former President...

Nigerians Tired of Wike and Atiku Dispute – Ohuabunwa

Nigerians Tired of Wike and Atiku Dispute – Ohuabunwa

by admin
August 17, 2022
0

Former Peoples Democratic Party (PDP) presidential aspirant, Mazi Sam Ohuabunwa, has lamented the prolonged crisis within the party between camps...

Just In: Ex Kogi Gov,Idris to Commission Project In Rivers

Just In: Ex Kogi Gov,Idris to Commission Project In Rivers

by admin
August 16, 2022
0

Former Kogi Governor, Alhaji Ibrahim Idris will commission remodelled and furnished waterlines building in Porthacourt. A special invitation from the...

We Can Borrow Till Eternity, Loans Are Source Of Infrastructures – APC Chairman, Adamu

We Can Borrow Till Eternity, Loans Are Source Of Infrastructures – APC Chairman, Adamu

by admin
August 16, 2022
0

  Speaking on a programme on Trust Television on Monday, Adamu said countries like the US and the UK borrow...

2023: Tinubu Invites Shekarau To A Closed Door Meeting

2023: Tinubu Invites Shekarau To A Closed Door Meeting

by admin
August 16, 2022
0

  The presidential candidate of the All Progressives Congress, APC, Bola Tinubu, has invited a former governor of Kano State,...

Next Post
Economic Sustainability: 6.39 million farmers tagged and enumerated – Osinbajo

Economic Sustainability: 6.39 million farmers tagged and enumerated – Osinbajo

As PDP Begins Sale Of Nomination Forms, Group Calls On Showunmi To Run For Publicity Secretary

As PDP Begins Sale Of Nomination Forms, Group Calls On Showunmi To Run For Publicity Secretary

RECOMMENDED

PHOTO NEWS: APC Presidential Candidate Tinubu Arrives Abeokuta, In Closed-door Meeting With Ex-President Obasanjo

PHOTO NEWS: APC Presidential Candidate Tinubu Arrives Abeokuta, In Closed-door Meeting With Ex-President Obasanjo

August 17, 2022
Arewa targets 1.5m votes for Tinubu

Arewa targets 1.5m votes for Tinubu

August 17, 2022
  • 651 Followers

MOST VIEWED

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
Observers Times News

We bring you the best reportage that is perfect for credible news in politics, business, sports, entertainment and many more...

CATEGORY

  • Africa
  • Apps
  • Business
  • Coronavirus
  • Crime
  • Documentaries
  • Education
  • Entertainment
  • Fashion
  • Featured
  • Food
  • Gadget
  • Gaming
  • Health
  • Inside Story
  • Jobs
  • Judiciary
  • Latest
  • Life style
  • Lifestyle
  • Local news
  • Mobile
  • Movie
  • Music
  • Nation
  • News
  • Opinion
  • Politics
  • Politics1
  • Research
  • Review
  • Science
  • Sports
  • Startup
  • Stories
  • Tech
  • Travel
  • Uncategorized
  • USA
  • World
October 2021
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031
« Sep   Nov »
  • Contact
  • Africa
  • Coronavirus
  • Documentaries
  • Local news
  • News

© 2021 Observers Times - (c) 2021 All Rights Reserved.

No Result
View All Result
  • Home
  • Politics
  • Nation
  • Crime
  • Inside Story
  • Opinion
  • Entertainment
  • Sports
  • Contact

© 2021 Observers Times - (c) 2021 All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In