TABLE SUMMARIZING DOMESTIC DEBT OF NIGERIA

(Source: Report Below)

Nigeria’s domestic debt hits N2tr      2/11/2007

From Kamarudeen Ogundele,

Abuja

Nigeria’s domestic debt has hit about N2.051 trillion, it was learnt yesterday.

According to a source at the Debt Management Office (DMO), as at June, the Nigerian Treasury Bills were N716.93 billion, Federal Government bond instruments (N925.64 billion), Treasury bonds (N407.93 billion) and Development stocks (N0.72 billion).

The figure is an increase of about N251.2 billion more than the N1.8 trillion recorded in March. Though official account of how the debt mounted was not available at the time of filing this report, the figure represents an increase of 13.95 percent within three months.

The debt profile was N897.95 billion and N1.66 trillion in 2000 and 2002.

The Nigeria fact sheet, presented by ActionAid Nigeria, indicated that $5 billion was borrowed by the Olusegun Obasanjo regime in 1978. As at 2000, the country had repaid about $16 billion.

A letter by the former president in 2001 also indicated that Nigeria owed London and Paris clubs about $31 billion of which $16 billion was paid in 2006.

The last payment was at the height of the campaign for debt cancellation, which the country championed in Africa. Some $18 billion debt relief was granted in 2005, with Nigeria paying back the $12.4 billion, including arrears and interest.

But this has attracted reactions from civil society organisations.

Action Aid Deputy Country Director, Ojobo Atuluku lampooned the government of lacking clear policy and legal framework, effective monitoring of funded projects, audits of aid and domestic debt and studies on debt trends and how they impact social service delivery.

Nigeria Network on Stolen Assets has also said it has published on its website all the projects which the last administration said it executed with the recovered Abacha’s loot but never existed.

ActionAid wondered why a poverty-ridden country like Nigeria paid back $32 to London and Paris clubs. Besides, it could not understand why the country keeps borrowing when budget utilisation is so low.

Despite the implications the debt has had on the economy, the organisation has raised the alarm that the country may be still assessing more loans after all.

ActionAid Team Leader, Governance, Ene Obi, described debt as a tool of domination. She posited that it is the nature of the global system attempting to regain control of the developing world over resources.

"Nigeria is till assessing more loans to mortgage the future of citizens. The question therefore is what did they take the money for, what are they talking more money for and where lies the hope for the poor and excluded.

"Why borrow when budget utilisation is so low. Why mortgage the future of our children yet unborn.

"Leaders must be responsible and accountable. Effective public finance analysis is essential," she said.