Technical Breakdown of Nigeria Debt Profile 2019
Written by Ibraheem Sikiru
Published on 10/9/2019 3:15:52 PM
Following the reading of the 2020 Nigeria Budget by President Muhammadu Buhari, Facebuk Academy has researched into the debt profile of the Federal Republic of Nigeria. The debt is including those incurred by both States and Federal Government. President Muhammadu Buhari had approached the cross session of the Federal Lawmakers, seeking an approval of N10.7trillion 2020 Nigeria Budget.
Following findings by the Facebuk Academy, Nigeria government will spend more to service debt in 2020 than ever, major reason for the rocketing 2020 Nigeria Budget.
Available data has shown that Nigeria's Actual External Debt Service Payment in the first quarter of 2019 stood at US$35.726 billion resulting from $7.48 billion as Principal Loan and Interest Fee of US$2.65 billion while US$1.44 billion was used to service the loan.
Breaking down the Nigeria's Actual External Debt Service Payment as at March 31, 2019 - Multilateral Debt amounts to 22.22%; Bilateral Debt amounts to 18.78% while Commercial Debt claimed 58.99%.
Further investigation reveals that as at March 31st, 2019 Domestic Debts as incurred by the 36 states and the Federal Capital Territory (FCT) stood at N3.972 trillion.
Federal Government has, so far, paid interest of N610.28 billion to service the debt that the government has incurred. This include interests of: N120.92 billion paid on Nigeria Treasury Bonds; N8.17 billion paid on the FGN SUKUK and N480.85 billion paid on the Federal Government Bonds.
At December 31st, 2018 the Federal Government Debt Stock by instrument was standing at N12.774 trillion.
Nigeria total external debt is standing at $2.5 trillion (N786 trillion) while the total domestic debt incurred by the Federal Government is US$4.27 trillion (N1311.3 trillion).
Domestic debt obtained by the 36 states of the federation and the FCT is US$1.29 trillion (N397.28 trillion).
Nigeria Total Debt Portfolio as at March 31st, 2019 was standing at US$8.13 trillion (N2494.7 trillion). This is the total amount of debt in the Federal Government of Nigeria, the 36 States and the FCT.
Of the US$8.13 trillion (N2494.7 trillion) total debt on the Federal Republic of Nigeria, Federal Government accounts for 52.56% while States and the FCT account for 15.92% of the foreign debt while the duo incurred domestic debt of 31.51% of the National Total Debt.
Recalling that President Muhammadu Buhari has just presented a N10.7 trillion 2020 Nigeria Budget, there is no doubt the country will have to burrow more and use part of the debt to service existing debt.