Nigeria's debt profile hits N17.36 trilion as Shehu Sani wants debt forgiveness

Nigeria's debt profile hits N17.36 trilion as Shehu Sani wants debt forgiveness

Nigeria’s debt profile has hit N17.36 trillion according to the Debt Management Office (DMO).

Nigeria's debt profile hits N17.36 trilion as Shehu Sani wants debt forgiveness
Shehu Sani wants Nigeria to seek for debt forgiveness

The director-general of DMO, Abraham Nwankwo, reportedly said this on Thursday, February 16, 2017 as it has also been revealed that the country would not seek any debt reprieve.

Premium Times reports that Nwankwo, who appeared before the Senate committee on local and foreign debts chaired by Shehu Sani, said Nigeria’s economy is too strong to ask for debt pardon.

He disclosed that Nigeria’s total debt profile as at December 31, 2016 rose to $57.39 billion, which is N17.36 trillion if converted.

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A breakdown of the debt profile shows that it comprises of $11.41 billion (N3.48 trillion) foreign debt and $45.98billion (N13.88 trillion) domestic debt.

He said the external debt rose by 6.53 percent in 2016 from $10.71 billion on December 31, 2015, while the domestic debt profile rose from N8.84 trillion in December 2015 to N11.06 trillion.

According to him, Nigeria paid $353.093 million for external debt service in 2016 instead of the projected $421.893 million.

This, he said, showed a shortfall of 16.31 percent difference between the projected debt service estimate and what was actually paid.

He said though the economy was facing a major challenge, it is very strong and does not need debt forgiveness.

“Nigeria is not in a position to beg for forgiveness.

“We are still a strong economy.

“Although there are challenges, but we have not got to the stage to ask for debt forgiveness,” he said.

However, Sani was not happy with Nwakwo’s position that the country’s economy was sound. He reminded the latter of how former President Olusegun Obasanjo got debt forgiveness.

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But in response, Nwakwo said: “I don’t think I have the mandate and I don’t want to presume that I have the capability to come here and pontificate on how all the problems of Nigeria can be resolved because that is not my mandate.

“And I will be very presumptuous to be saying that.‎”

Source: Legit.ng

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