Breakdown of Nigeria's Borrowing Plans for three years as President Buhari is Set to Leave Behind N50trn Debt
- Nigeria's public debt is set to hit N50 trillion at the time the present administration leaves office in 2023
- This is according to a new borrowing plans announced in the new National development plan recently unveiled
- The plan shows at least 12 trillion will be borrowed from 2021 to 2023 at the expiration of the tenure of President Buhari
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President Muhammdu Buhari is set to leave behind at least N50 trillion of debt at the time he is leaving office in 2021
This is according to the projections in the National Development Plan 2021-2025.
The Debt Management Office had disclosed that Nigeria’s public debt was N38tn as of the end of the third quarter of 2021, with the total debt stock rising by N2.540tn in three months from July to September 2021 punch newspaper reports.
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The report noted that President Buhari plans to accumulate about N12tn debt in two years from 2021 to 2023.
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However, based on the plan, the government targets a reduction in total public debt by 2025.
The borrowing plan
A tabular illustration in the document showed that the government targets
- N39.59tn debt stock for 2021,
- N46.63tn for 2022,
- N50.22tn for 2023,
- N50.53tn for 2024,
- N45.96tn by 2025.
Nigeria govt explains need to borrow
The plan read in part,
“The plan will require an investment of about N348.1tn to achieve the plan objectives within the period of 2021-2025. It is estimated that the government capital expenditure during the period will be N49.7tn (14 per cent) while the balance of N298.3tn (86 per cent) will be incurred by the Private Sector.
Of the 14 per cent, government contribution, FGN capital expenditure will be N29.6tn (9 per cent) while the sub-national governments’ capita
“The borrowing framework in the plan is 45 per cent each for both foreign and domestic borrowing while the other financing sources account for 10 per cent.
The plan also noted that Domestic bonds and concessional external loan financing, amongst others, will account for the borrowing strategies for the plan to improve on current debt management strategies to ensure sustainability.
China accounts for 81.98% of Nigeria's external debt to countries
In a related story, Legit.ng revealed that the news of China taking over Uganda's Airport stirred heated reactions from Nigerians as many fear similar fate awaits.
Nigeria Although details of Nigeria's agreement with China is publicly not available, DMO data shows Nigeria is indebted to five countries worth over N1 trillion.
As expected China accounts for the highest debt stock by countries and the debts were obtained through bi-lateral agreements.
Source: Legit.ng
