Nigeria’s Debt Profile Hits N17.36trn

In less than 20 months, Nigeria’s total debt profile has risen to N17.36  or $57.39billion  from  N2.03trillion ($10.32billion)  as at the end ofJune 2015.
This  revelation was made  yesterday  by the Director General of the Debt Management Office (DMO), Dr Abraham Nwankwo during the budget defence session for his agency   before the Senate Committee on Foreign and Local Debts.
According to the DMO’s DG, the total debt
profile of the country which comprises of both local and foreign debts has been on the increase since July 2015 due to prevailing economic challenges at both the federal and state levels.
He said while the Federal Government’s domestic debt as at December 31, 2015 was N8.84trillion, it rose to N11.06trillion as at December 2016.
Nwankwo  explained  that the total debt profile of $57.39billion is made up of external debt stock of $11.41billion (N3.48trillion and domestic debt stock of $45.98billion(N13.88trillion) out of which  the 36states of  the federation and the Federal Capital Territory accounted for about 32.45%  and the federal government accounting for the remaining 67.55%.
Worried by the rising debt profile, the Chairman of the committee, Senator Shehu Sani (APCKaduna Central) and other members, asked the DMO’s DG why the federal
government  had not sought for debt relief from the creditors as was the case during the Olusegun Obasanjo administration.
as once did.
The DG in his response incurred the wrath  of the committee members by declaring that Nigeria despite
the high debt profile is still strong economically.
”In  our humble view, Nigeria is not in a position to beg for debt  forgiveness. Nigeria is still a very strong economy.  We have some challenges. But Nigeria has not reached a stage that it needs to beg for debt forgiveness.We are not in that
position, Sir”.  the DG said
It was a submission that made a  member of the committee, Senator Obinna Ogba,  to fire back at him, by asking him whether Nigeria was in bad situation when the Obasanjo-led administration  sought debt write – off .
In response,  the DG  said  the question was
too big for him to answer.
Angered by the DMO’s DG’s  response ,Senator Shehu Sani  accused him of being careless  and insensitive to the plights of ordinary Nigerians going by his stance against seeking for debt relief.
His words “It is shocking that in 2006, people found it easier to feed  their families and pay the fees of their children and rents.  Now, things are in a very bad shape. But you’re speaking in a way not  typical of somebody who lives with the people but like somebody who is speaking from an ‘expert’ point of view.
“You said we are not in a bad position to ask for debt  forgiveness. If you are talking from the point of how our people live nowadays, you would not be able to say such  things. But you are speaking naturally as an expert.”

Nneka Amaechi-Nnadi, Abuja