NIGERIA spent N960bn ($6.4bn) on debt servicing between 2008 and 2009, according to the Annual National Debt Sustainability Analysis 2010.
The report also said that the borrowing limit for the country had been set at N1.06tn for 2011, following complaints of rising national debt profile.
It was prepared by a combined team of the Debt Management Office, Central Bank of Nigeria, National Planning Commission, Budget Office of the Federation and the National Bureau of Statistics.
The report said, ”Debt service payments for the year 2009 amounted to $2.34bn as against $4.06bn in 2008, due to the absence of maturing FGN bond obligation in 2009.”
This translates into N960bn in the two-year period, using an exchange rate of N150 to the dollar.
The DMO had said in September that some of the loans Nigeria was currently repaying were obtained immediately after the nation attained independence in October 1960.
The Director-General, DMO, Dr. Abraham Nwankwo, had said that the said loans were obtained by the then central and regional governments.
But he did not state the amount that was borrowed by the country between 1965 and 1970, and thereafter.
According the the report, ”Of the total debt service, the sum of $1.91bn or 81.67 per cent constituted domestic debt service payments, while the balance of $428m or 18.33 per cent was for external debt service payments in 2008.”
It added, ”External debt service payment in 2009 stood at $428.04m, mainly comprising of bilateral debt service of $260.52m or 60.87 per cent.
”The share of the state governments stood at $140.9m or 32.92 per cent of the total external debt service, while the balance of $287.14m or 67.08 per cent represents external debt service payments by the Federal Government.”
According to the report, the country’s borrowing limit for 2011 has been set at N639bn from domestic sources and N426bn from foreign sources.
It said, ”The maximum government borrowing limit for the year 2011 is N639bn and $2.84bn, to be obtained from domestic and external sources, respectively.
”It is recommended that government financing options should include accessing the international capital market, domestic debt market and private sector investments under the Public- Private Partnership.”
It added that the outcome of the Debt Sustainability Analysis exercise suggested the need for sound fiscal management, especially in the light of the likely rise in capital expenditure.
This, the report noted, was as a result of envisaged accelerated economic growth and sub-optimal non-oil revenue generation and collection process.
Source:http://www.punchng.com/Articl.aspx?theartic=Art20101119147340
No comments:
Post a Comment