Reps To Investigate $17.83b Rise In Nigeria’s External Debt

House of Representatives is set to carryout an investigation on drastic increase of Nigeria’s external debt that has risen from $10.49b in 2015 to $17.83b in June 2018.

This comes after an adoption of a motion raised by Chairman of the House Committee on Capital market, Yusuf Tajudeen (PDP, Kogi) who stated that the nation’s debt profile has continued to rise and cause several controversies.

He also stated that this has led to varying figures given by the Federal government and some fiscal policy monitoring organisations.

According to THE NATION, the lawmaker said that according to Vice President Yemi Osinbajo, who happens to be the chairman of Nigerian Economic Council (NEC), the nation’s debt profile stood at $10b in the last three years while the figures given by economic and budget experts range between $13b to $47b from May 2015 to June 2018.

He said, “Nigeria’s external and domestic debt, which reveals that the external debt grew to $17.8b in June 2018 from $10.49b in 2015, while domestic debt, which was N8.39 billion in June 2015 has risen to N 12.15 trillion as at June 2018; representing an increase of N17.6 trillion in three years”.

Apart from the increasing national debt profile, there is a significant rise in sub-national borrowing in the last three years, such that the domestic debts of states governments rose from N1.69 trillion in June 2015 to N3.4 trillion in June 2018, he said.

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“Unlike global practices where borrowings are tied to specific projects mutually agreed by respective organs of government, various borrowings by the Federal government since June 2015, have not been transparent, this is a situation that gives room for doubts, misconceptions and prone to manipulations,” added.

According to him, Nigeria’s revenues are sharply declining, which makes it increasingly difficult to attract and sustain higher debts.

This, he said ultimately portends micro and macro dangers to the national economy amidst numerous developmental challenges.

The motion unanimously adopted after a voice while Joint committee on Aids, Loans and Debt Management, Capital Market and Institutions and Banking and Currency were mandated to carry out the investigation.