Lai Mohammed Says, No Cause For Alarm Over Nigeria’s $81.274 bn External Debt Profile

The Minister of Information and Culture, Lai Muhammed, has said there was no reason for Nigerians to panic over the $81.274 bn external debt profile of Nigeria under Buhari’s administration.

The Minister of Information and Culture, Alhaji Lai Mohammed, gave the assurance while briefing newsmen on the achievements recorded by the President Muhammadu Buhari administration in the outgoing 2019.

Alhaji Mohammed, who faulted critics of the Buhari administration for raising alarm over the current debt profile of the country, said the debt profile is highly exaggerated and being portrayed without any numerical fact.

He also lampooned the lawmaker representing Osun East Senatorial District, Senator Francis Fadahunsi for alleging that he (Lai Mohammed) was the brain behind the hate speech bill at the National Assembly.

He said: “You must have read the fake news attributed to Senator Fadahunsi that I am behind the hate speech bill at the National Assembly and that the senator who is sponsoring the bill is fronting for me.

“This is a typical example of the fake news we are trying to fight. I am not the sponsor of the hate speech bill at the National Assembly. However, I remain committed to sanitizing the social media.”

Setting the records straight on the current debt profile of the country, the Information Minister urged Nigerians to ignore those peddling the false figures.

He said: “Recently, there have been concerns in certain circles about the country’s growing debt, both domestic and external. In the process, there have been some misrepresentations and scaremongering. We, therefore, believe it is important to put things in the right perspective, so our citizens will be well informed.

“The public debt stock is actually a cumulative figure of borrowings by successive governments over many years. It is therefore not appropriate to attribute the public debt stock to one administration.

“Nigeria’s total public debt stock in 2015 was $63.80 billion, comprising $10.31 billion of external debt and $53.49 billion domestic debt. By June 2019, the total debt stock was $83.883 billion, made up of $27.163 billion of external debt and $56.720 billion domestic debt. It is, therefore, not correct to say that Nigeria’s external debt alone is $81.274 billion.

Also Read:

https://ekohotblog.com/2019/12/31/burutai-says-fg-in-control-of-nigerian-territory/

 

“There is yet no cause for alarm. This is because Nigeria has a debt ceiling of 25% in the total public debt stock to Gross Domestic Product (Debt/GDP), which it has operated within. The ratio for December 31, 2018, and June 30, 2019, were 19.09% and 18.99% respectively.

“The debt service to revenue ratio has however been higher than desirable, hence the push by the government to diversify the economy and increase oil and non-oil revenues significantly. The government is also widening the tax base to capture more tax-paying citizens.

“In the face of massive infrastructural decay, no responsible government will sit by and do nothing. This administration’s borrowing, therefore, is aimed at revamping our infrastructure, including roads, bridges, railways, waterways and power, to help unleash the potential of the nation’s economy. The loans for the educational sector will contribute to the development of our human capital while the loans for the agricultural sector will help the move to diversify the economy.”