Friday, July 30, 2021

Why Nigeria’s debts keep increasing under Buhari: DMO

The total public debt as of December 31, 2020, released by the DMO is N32.915 trillion.

• April 15, 2021
CBN Governor Godwin Emefiele and President Muhammadu Buhari
CBN Governor Godwin Emefiele and President Muhammadu Buhari

The Debt Management Office (DMO) has explained why Nigeria’s borrowings have continued to increase since 2015 and clarified that its published debt stock is not for the federal government alone.

The Director General of DMO, Patience Oniha, on her Twitter handle on Wednesday, explained that the debt stock included 36 states and the Federal Capital Territory (FCT).

She disclosed that the decline in revenue generation occasioned the federal government’s increased level of borrowings since 2015.

She added that the borrowings, on the decline since 2018, had to increase again due to the COVID-19 pandemic.

Ms Oniha stated, “First, it is useful to state that the public debt figures published by the DMO are the debt stock of the Federal Government of Nigeria, 36 states, and the FCT.

“That is, the debt is not only that of the federal government; state governments and the FCT have all been borrowing.”

She added, “At the federal level, the increased level of borrowing since 2015 was due to the collapse in revenues from crude oil.

“The level of new borrowing started trending downwards from 2018 up to the first 2020 Appropriation Act.

“Unfortunately, the adverse impact of COVID-19 on revenues and increased spending have resulted in higher levels of borrowing.”

She pointed out that the DMO was using the Debt Sustainability Analysis (DSA) and the Medihaserm Debt Management Strategy (MTDS) to manage the public debt to ensure sustainability.

Ms Oniha further noted that the DMO would ensure that Nigeria’s public debt was sustainable and that borrowing was done at the lowest possible cost.

She added that growth in revenues remained a key focus of fiscal authorities.

The total public debt as of December 31, 2020, released by the DMO is N32.915 trillion.


More from Peoples Gazette

Blessing Okagbare and Grace Nwokocha


Tokyo Olympics: Okagbare, Nwokocha qualify for 100m semifinals

Nigeria’s Blessing Okagbare and Grace Nwokocha on Friday qualified for the semifinals of the women’s 100 metres event at the ongoing Tokyo 2020 Olympics.


Only four per cent of northern girls completed secondary school: Report

Only four per cent of northern girls complete secondary school, says a survey by the Centre for Girl Child Education (CGE).

Kaduna State governor, Nasir el-rufai, Ibrahim El-Zakzaky and Wife, Zeenat


El-Rufai govt files fresh charges against El-Zakzaky, wife

Governor Nasir El-Rufai’s government has filed fresh charges against the leader of the Islamic Movement in Nigeria (IMN), Ibrahim El-Zakzaky, and his wife, Zeenat.


D’Tigress lose again at Tokyo Olympics

D’Tigress, Nigeria’s senior women basketball team, lose 62-87 to their French counterparts in their second preliminary round Group B fixture at the ongoing Tokyo Olympics.


Internet Fraud: Hushpuppi ally Abba Kyari blocks Peoples Gazette on Instagram

Nigeria’s deputy police commissioner Abba Kyari has blocked Peoples Gazette (@GazetteNGR) on his Instagram page, denying it access to critical public information.


Katsina: FG to audit school feeding programme

The federal government says it will audit the National Home Grown School Feeding Programme (NHGSFP) in Katsina.