Reps probe Nigeria’s ‘alarmingly high’ N22trn debt profile

The house of representatives has resolved to probe Nigeria’s debt profile which lawmakers say is at an “alarmingly high” rate.

The lawmakers made the resolution while adopting a motion introduced by Yusuf Tajudeen from Kogi state, during plenary on Thursday.

As of June 2018, figures from the Debt Management Office (DMO) show that Nigeria’s external debt profile stands at N22 trillion.

In the N8.83 trillion 2019 appropriation bill just presented by President Muhammadu Buhari, N2.14 trillion was provided for debt servicing out of which 80 percent is for servicing domestic debt.

Amine Mati, International Monetary Fund (IMF) senior resident representative for Nigeria, had said more than 50 percent of Nigeria’s revenue is used to service the country’s debt.

The lawmakers said Nigeria’s debt profile has led to “growing economic instability, stifled growth and stunted development, as well as impacted negatively on various sectors of the economy”.

They expressed concern that aside from the rising national debt profile, there is a “sharp increase” in sub-national borrowing in the last three years.

They added that the positive impact of Nigeria’s borrowings since 2015 is “yet to be seen” and that “unlike global practices where borrowings are tied to specific projects mutually agreed by respective organs of government, various borrowings since 2015, have not been transparent”.

“Nigeria’s revenues are sharply declining, which makes it increasingly difficult to attract and sustain higher debts, ultimately portending micro and macro dangers to the national economy amidst numerous developmental challenges,” the lawmakers said.

Thereafter, the committees on aids, loans and debt management, capital market and institutions, as well as banking and currency, were delegated to investigate the matter and report back within four weeks.