A study commissioned by ActionAid Nigeria has revealed that the country’s external debt stock increased by 410.9 per cent between 2012 and 2020, with the highest year-on-year growth recorded in 2017 at 65.82 per cent, followed by 35.16 per cent growth in 2013 and 33.63 per cent in 2018. Presenting the report during a one-day National Dialogue on Nigeria’s Rising Debt Profile, convened by ActionAid Nigeria, with the theme: ‘The Rising Public Debt in Nigeria and the Challenges for National Development’, the lead consultant of Centre for Social Justice, Eze Onyekpere, who led the team, said the country’s domestic debt component grew by 209.1per cent within the period of study.
“The highest year-on-year increse was recorded in 2013 with a 32.Sixty three in step with cent increase, accompanied by way of 32.30 per cent in 2016 and 14.Eighty two in step with cent in 2017. External debt inventory grew extra than the domestic debt inventory for the duration of the observe length”, he stated.
Onyekpere cited that Federal Government’s aspect of the external debt inventory between 2014 and 2018 calculated in US dollar grew by 226.Forty seven in line with cent, at the same time as the equal amount calculated in naira grew with the aid of 496.6 in keeping with cent.
“The states and FCT external debt stock calculated in USD grew by 29.5 according to cent, at the same time as the calculation in naira produced 136.7 per cent growth. The outside debt factor had risen to 31.Eighty two according to cent of standard debt as at quit of 2018, even as the domestic debt changed into 68.18 according to cent of average debt. Furthermore, Nigeria’s debt to GDP has been growing over time and stood at 19 per cent with the aid of stop 2018.”
Onyekpere stated the Central Bank of Nigeria (CBN) and banks are closely exposed to these home units as much as forty five.2 in line with cent of average and the non-bank public is especially approximately Pension Fund Administrators, Asset and Fund Managers, as well as Insurance companies keep the ultimate part.
“The current debt to retained revenue profile of approximately eighty three per cent isn't sustainable. The pressure to elevate new domestic sales is a war of the technology and it need to attract the strength, vision and vigor of each authorities and citizens. The primary driver should be a commitment to expand available assets, in preference to the current clamour for sections of the country to have extra of the stagnant pool of to be had resources. Debt may be decreased if we generate more sales.
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