- President Muhammadu Buhari has reacted to the complaints regarding his borrowing pattern in relation to Nigeria’s debt profile
- According to Buhari, the nation’s debt is still at a healthy and sustainable level considering its essence, noting that the additional loan is important
- The Nigerian leader insists the new loans would serve as a fund for the completion of infrastructural projects in the country
FCT, Abuja - In recent times, Nigerians have continued to question the essence of the federal government’s borrowings, following the present state of the economy.
But President Muhammadu Buhari in reaction said that Nigerians were right to be concerned about the decision of the federal government to seek additional loans to fund 2022 budget estimates, but insisted that the debt level of the country was still at a sustainable limit.
This Day reports that the President made this disclosure on Thursday, October 7, while presenting the 2022 budget estimates to the joint session of the National Assembly.
The president said the target of his administration is to grow the country’s Gross Domestic Product (GDP) from the current 8 per cent to 15 per cent by 2025, Daily Trust also reported.
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He said the new loans were meant to complete ongoing critical infrastructure projects across the country.
Nigeria government spends N5.80tn in six months, but 61% of it was borrowed from countries, IMF, World Bank
Meanwhile, the federal government has revealed that in the first six months of the year, a total of N5.80 trillion was spent to attend to various provisions in the 2021 budget.
However, only N2.13 trillion, or 39% of the total, came from money earned by the federal government throughout the six months period.
This is according to a document published by the budget office and signed by Ben Akabueze, director-general budget office of the federation, and analysed by Legit.ng.
Buhari borrows over N10 billion daily in the last six years
Legit.ng had earlier reported that each Nigerian is a debtor, owing over N160,000 due to the amount of loan borrowed by President Buhari since he came into power after the presidential election in 2015.
President Buhari has borrowed N21 trillion since July 2015, increasing Nigeria's debt to N33.1 trillion as of March 2021, according to data from the Debt Management Office (DMO).
A breakdown of the debt linked to President Buhari's administration showed that on a daily basis, the country secures over N10 billion within the last six years.