- President Muhammadu Buhari and his cohorts have been advised to apply caution over the country's continuous habit of borrowing
- The debt management office (DMO) confirmed Nigeria is owing over N41.60 trillion in debt as of March 2022
- Meanwhile, the NNPC has been accused by the Nigerian Customs Service (NCS) for fictitious stats in petrol consumption across the federation
These statistics were disclosed by the director-general of DMO, Mrs Patience Oniha on Thursday, September 1 in the nation’s capital, Abuja.
Mrs Oniha stated that Nigeria’s debt profile has risen so high due to the country’s inability to generate revenue and its yearly approval of the national budget by the national assembly with numerous deficits.
She advised that the federal government should be cautious of borrowing and focus more on how to invent plans and ways to generate revenue for sustainability, recovery and clearing these deficits.
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“As at December 2020, the debt stock of the federal, state governments and the Federal Capital Territory was N32.92 trillion. By December 2021, it jumped to N39.556 trillion. We publish quarterly, and as at March of this year, it was N41.6 trillion. On average, Federal Government is owing about 85 per cent of the total sum.
“Until the issues of personnel, overhead and capital expenditure are properly addressed in the budget, borrowing would not stop.”
She further revealed that the World Bank has rated Nigeria’s GDP ratio very low but rated the debt servicing to revenue ratio very high.
Mrs Oniha said:
“The World Bank survey report of about 197 countries revealed that Nigeria is number 195, meaning we beat only two countries and that is Yemen and Afghanistan. I don’t think we want to be like those places.”
Customs, and NNPC at loggerheads over revenue output, subsidy
Meanwhile, Legit.ng gathered that the Nigerian Customs Service has been at loggerheads with the NNPC over the latter’s alleged publication of fictitious figures in disguise of subsidy payment at the expense of Nigerian citizens who forebear the consequences.
Making these allegations, the Comptroller General of the NCS, Hameed Ali said the assertion by the NNPC that Nigerians consume 98 million litres of petroleum daily is not valid but false.
He argued that based on the findings of the NCS, consumption at best should not be more than, 62 million litres.
Ali further accused the NNPC of lacking accountability for 36 million litres in daily consumption.
“It is not possible for everyone to fill their tank every day. The deficit of 36 million litres requires over 500 tankers to carry. Where do they load and take it to that we do not know?”