President Buhari, in a letter to the House of Representatives, requested the lawmakers to approve a N4 trillion loan to pay petrol subsidy for the year 2022.
Nigeria’s debt would rise by N4 trillion from the N39.56 trillion (December, 2021) it is when the House of Representatives grants President Muhammadu Buhari’s request for a loan. The proposed amount by President Buhari is N442.72 billion higher than the N3.557 trillion earlier requested in February 2022. This would also be the third loan request in five months by the Nigerian President, the first being in November 2021.
Breakdown of Nigeria’s debt
A breakdown of Nigeria’s debt shows that the federal government portion stands at N33.228 trillion with N19.243 trillion owed domestically and N13.885 trillion owed externally. The Federal Capital Territory and the 36 states in Nigeria owe a total of N6.248 trillion.
What he’s saying
President Buhari defended the extra N442.72 billion by stating that the increment accommodates the recent economic challenges in the country and increased price of crude oil exacerbated by Russia’s invasion of Ukraine. The Nigerian president also lamented that the extension of the removal of fuel subsidy by 18 months is deteriorating Nigeria’s revenue.
By the numbers
Nigeria’s debt in President Buhari’s 7+ years government has increased by a record 208 percent or N21.168 trillion.
- With election year approaching and PIDF projects nearing completion, Nigeria’s debt is projected to climax at N40 trillion come 2023.
What this means
Nigeria’s recurrent borrowing shows that the government is running the country on a negative budget, as nearly all its revenue and loans are for servicing expenditures and debts.