Reps Probe $47bn, N12.15trn Foreign, Local Debts

The House of Representatives is to commence a comprehensive investigation into Nigeria’s rising debts profile in the face of economic uncertainties.
The lawmakers said the need for the probe was informed by the fact that the country’s debts have become controversial following various figures bandied by both the federal government and international financial organisations.
Debating the subject at yesterday’s plenary before the lawmakers adjourned to January 16, 2019 for the Christmas and New Year holidays, they resolved to mandate the House joint committees on Aids, Loans and Debt Management, Capital Market and Institutions, as well as banking and currency to probe increasing external and domestic debts from $10.49 billion in 2015 to $17.83 billion in June 2018 and other accounts by economic and budget experts put at between $13billion and $47billion from May 2015 to June 2018.
They are also to look at the local component debts which increased from N8.3trillion to 12.15trillion in three years, 2015-2018.
These resolutions followed the adoption of a motion sponsored by Honourable Yusuf Tajudeen (PDP, Kogi), saying that there have been issues concerning the actual figures of what the country owes its local and international creditors.
Yusuf noted that the current figures were unknown to government officials resulting to different figures from federal government and some fiscal policy monitoring groups.
“Even the Vice President Yemi Osinbajo, who is the Chairman of Nigerian Economic Council has revealed that the nation’s debt profile stood at $10 billion in the last three years while the figures given by economic and budget experts range between $13 billion to $47 billion from May 2015 to June 2018″, Yusuf explained during debate.
He added: “Nigeria’s external and domestic debt, which reveals that the external debt grew to $17.8 billion in June 2018 from $10.49 billion in 2015, while domestic debt, which was N8.39 billion in June 2015 has risen to N12.15 trillion as at June 2018; representing an increase of N17.6 trillion in three years.”
The member who chairs the House committee on capital market and institutions expressed worry that notwithstanding increasing national debt profile, the states are not left out as “there is a sharp increase in sub-national borrowing in the last three years, such that the domestic debts of states governments rose from N1.69 trillion in June 2015 to N3.4 trillion in June 2018.