Jonathan govt incurs N5tn domestic debt in five years

In the over five years that President Goodluck Jonathan has been presiding over the affairs of the country, the Federal Government has borrowed N5.04tn from the domestic debt market.

Jonathan became Nigeria’s acting President on February 10, 2010 and substantive President on May 6, 2010 following the death of President Umaru Yar’Adua on May 5, 2010. On May 29, 2011, he was sworn in as an elected president.

Records at the Debt Management Office showed that the domestic debt of the Federal Government stood at N3,466,360,000,000 (N3.47tn) as of March 31, 2010.

The latest debt statistics from the DMO as of March 31, 2015 showed that the domestic debt   had risen to N8,507,545,474,000 (N8.51tn).

This means that in the last five years, the Federal Government had borrowed N5.04tn from domestic lenders. It also means that within the period, the domestic debt of the Federal Government grew by 157.48 per cent.

A breakdown of the domestic debt profile of the Federal Government by instruments showed that FG Bonds accounted for N5.37tn or 63.13 per cent of the total domestic debt.

The Nigerian Treasury Bills, on the other hand, accounted for N2.87tn or 33.68 per cent of the Federal Government total domestic debt profile.

Similarly, the Nigerian Treasury Bonds accounts for N271.22m or 3.19 per cent of the Federal Government’s total domestic debt profile.

The DMO statistics also showed that the domestic debts of the states grew by 116.83 per cent within the same period.

With $1,169,712,848.66, Lagos State occupied the top position on the list of the most externally indebted states. It was followed by Kaduna, $234,416,052.15; Cross River State, $131,469,661.94; Edo State, $123,128,295.53; and Ogun State, $109,154,553.08.

The least exposed states in terms of external debts were Taraba, $22,780,063.89; Borno, $23,067,549.16; Delta, $24,233,639.67; Plateau, $30,947,579.75; and Yobe, $31,237,619.25.

A statement by the DMO last week said the debts of the country, especially that owed by the Federal Government had not grown unusually in the last four years. It also explained that the debts had been rising because of budget deficit financing.

...Punch