- Nigeria's debt will keep rising according to the country's finance minister
- The projection is based on existing approval, and it is expected to rise to N38.68 trillion by December 2021
- The federal government has been consistently criticised for going on a borrowing spree since it came on board in 2015
The minister of finance, budget and national planning, Zainab Ahmed, has revealed that the total public debts of Nigeria would hit N38trillion by December 2021.
The minister disclosed this on Tuesday, November 3 in her presentation to the Senate committee on local and foreign debts.
According to her, the total public debt stock comprising the external and home debts of the federal and state governments and the Federal Capital Territory stood at N31.01trn (USD85.90 billion) as of June 30, 2020.
“It is projected, based on existing approval, to rise to N32.51 trillion by December 31, 2020, and N38.68 trillion by December 31, 2021.”
Last month, Mrs. Ahmed said the country will not apply for debt relief to get out of its crippling N31 trillion debt burden.
The minister made the government's position known on Tuesday, October 13 in Abuja during the public presentation of Budget 2021, adding that the Buhari administration is not considering such an option at this time.
According to her, many loan agreements have been entered with various lenders, adding that asking for debt relief would portend Nigeria in the eyes of its creditors as a country that cannot repay its debts.
Meanwhile, the Catholic Bishops’ Conference of Nigeria (CBCN) on Wednesday, September 30 warned that the country is on the verge of collapsing.
The CBCN in an address to mark Nigeria's 60th independence anniversary wondered how Nigerians can conveniently celebrate the occasion amidst huge borrowings with colossal interest to be paid back.
The group further lamented that presently the country is servicing its huge debt with a significant revenue of the country.
In an address by Most Rev. Augustine O. Akubeze, Archbishop of Benin city and president of the CBCN, the Catholic Bishops said the rate of unemployment is growing, and there seems to be no clear plan to fix the economy as well as help the private sector to grow so youths can be employed.
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