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FG DEBT CLIMBED 658% TO N26.9 TRILLION IN 21 YEARS
Dec 01 2021
Data seen above showed that federal government borrowings (local and foreign debt) climbed from N3.55 trillion in 1999 to N26.91 trillion at the end of March 2021.
This represents a 658 percent increase in 21 years, comprising the administrations of Olusegun Obasanjo, Umar Musa Yar’Adua, Goodluck Jonathan, and the current Muhammadu Buhari.
HOW MUCH BUHARI BORROWED IN 6 YEARS
On external borrowings, President Buhari increased debt from $7.3 billion in 2015 to $28.57 billion as of December 2020. This means that the president incurred $21.27 billion on foreign loans to the country’s debt portfolio.
The country’s exchange rate moved from N197 to a dollar in 2015 to N381 at the end of December 2020.
Analysis of consolidated debt showed that the external debt increased by 291.37 percent while domestic debt grew by 86.31 percent in the last six years of the Buhari government.
Overall, the Buhari-led government has had an accumulated debt of N17.06 trillion as of March 2021, using the N381 exchange rate. This represents a 173.2 percent increase from when he was elected president in 2015.
DEBT PROFILE UNDER JONATHAN’S ADMINISTRATION
At the beginning of former President Goodluck Jonathan’s tenure in 2011, the federal government had an accumulated debt of N6.17 trillion.
Analysis of the debt figure showed that local debt amounted to N5.62 trillion while foreign debt stood at $3.5 billion (about N548.65 billion, using the exchange rate of N156.7/$1).
By the end of 2015, the foreign debt component hit $7.3 billion, while domestic debt increased by N8.4 trillion. The country’s exchange rate also stood at N197/$1.
Overall, the federal government component of the total public debt increased from N6.17 trillion in 2011 to N9.8 trillion in 2015, representing an increase of N3.63 trillion or 58.8 percent.
YAR’ADUA/JONATHAN’S BORROWINGS
Under the Umar Musa Yar’Adua/Goodluck Jonathan-led government between 2007 and 2011, domestic debt of the federal government moved from N2.17 trillion to N5.62 trillion. The foreign component of the debt also increased from $2.11 billion to $3.5 billion within the period.
The country’s exchange rate also moved from N116.8/$1 to N156.7/$1.
The combined debt profile increased from N2.42 trillion to N6.17 trillion in four years, representing a 155 percent jump.
Of the debt figure, Jonathan completed the tenure from May 2010 to May 2011 after the death of Yar’Adua. The period saw a surge in the federal government’s debt from N4.94 trillion to N6.17 trillion. This represents a 24.9 percent increase in one year.
OLUSEGUN OBASANJO’S TENURE
During the tenure of former president Olusegun Obasanjo, the debt level of the federal government reduced from N3.55 trillion in 1999 to N2.42 trillion at the end of 2007.
The 8-year term of Obasanjo resulted in a dip in FG’s local and foreign debt level, representing a 31.8 percent decline.
The country’s exchange rate was between N98.02 to N116.8 to a dollar during the tenure.
Analysis of the figures showed that external debt decreased from $28.04 billion by 1999 to $2.11 billion at the end of 2007. However, the domestic component increased from N798 billion to N2.17 trillion within the same period.
Dec 01 2021
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LoveRichard
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