In the over five years that President Goodluck Jonathan has been presiding over the affairs of the country, the Federal Government has borrowed N5.04tn from the domestic debt market. Jonathan became Nigeria’s acting President on February 10, 2010 and substantive President on May 6,2010 following the death of President Umaru Yar’Adua on May 5,2010. On May 29, 2011, he was sworn in as an elected president.
Records at the Debt Management Office showed that the domestic debt of the Federal Government stood at N3,466,360,000,000 (N3.47tn) as of March 31, 2010. The latest debt statistics from the DMO as of March 31, 2015 showed that the domestic debt had risen to N8,507,545,474,000 (N8.51tn).
This means that in the last five years, the Federal Government had borrowed N5.04tn from domestic lenders. It also means that within the period, the domestic debt of the Federal Government grew by 157.48 per cent. A breakdown of the domestic debt profile of the Federal Government by instruments showed that FG Bonds accounted for N5.37tn or 63.13 per cent of the total domestic debt.
The Nigerian Treasury Bills, on the other hand, accounted for N2.87tn or 33.68 per cent of the Federal Government total domestic debt profile. Similarly, the Nigerian Treasury Bonds accounts for N271.22m or 3.19 per cent of the Federal Government’s total domestic debt profile.
The DMO statistics also showed that the domestic debts of the states grew by 116.83 per cent within the same period. As of March 31, 2015, the domestic debts of the states stood at N1.69tn or $10.87bn. However, as of March 31, 2010, the domestic debts of the states which were only given in dollars stood at $5.01bn.
This means that in dollar terms, the domestic debts of the states rose by $5.85bn or 116.83 per cent in the last five years. Within the same period, the external debts of both the federal and state governments rose from $4,306,180,000 ($4.31bn) to $9,464,110,000 ($9.46bn). This means that within the five-year period, the external debts of both tiers of government rose by $5,157,930,000 ($5.16bn). In percentage terms, the external debts of both tiers of government rose by 119.78 per cent.
The latest debt figures released by the DMO did not segregate the external debts of the country into the proportions owed by the Federal Government and the various states of the federation. As of December 31, 2014 when the debt figures were last segregated, the states’ component of the nation’s external debt profile stood at 33.63 per cent while the Federal Government’s component stood at 66.37 per cent.
With $1,169,712,848.66, Lagos State occupied the top position on the list of the most externally indebted states. It was followed by Kaduna, $234,416,052.15; Cross River State, $131,469,661.94; Edo State, $123,128,295.53; and Ogun State, $109,154,553.08. The least exposed states in terms of external debts were Taraba, $22,780,063.89; Borno, $23,067,549.16; Delta, $24,233,639.67; Plateau, $30,947,579.75; and Yobe, $31,237,619.25
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