The Director-General of the Debt Management Office, Dr. Abraham Nwankwo, on Thursday revealed that debt profile of country has risen to N17.36 trillion.
This was just as the Nwankwo stated that Nigeria’s economy is too strong to ask for debt pardon.
Nwankwo, while appearing before Senate Committee on Local and Foreign Debts, disclosed that Nigeria’s total debt profile as at December 31, 2016 rose to $57.39 billion, an equivalent of N17.36 trillion, comprising $11.41 billion (N3.48 trillion) foreign debt and $45.98billion (N13.88 trillion) domestic debt.
He added that the figures showed that external debt rose by 6.53 per cent in 2016 from $10.71 billion on December 31, 2015, while the domestic debt profile rose from N8.84 trillion in December 2015 to N11.06 trillion in December, 2016, representing an increase of 25.11 per cent.
Nwankwo explained to the Committee that the marginal rise in the domestic debt profile was the offshoot of net issuances of Federal Government bonds and treasury bills.
He further disclosed that Nigeria paid $353.093 million for external debt service in 2016 as against the projected $421.893 million, thus implying a shortfall of 16.31 per cent difference between the projected debt service estimate and what was actually paid.
However, Nwankwo said the country is strong to ask for debt relief when the Chairman of the Committee, Senator Shehu Sani, suggested that the country should exploit the goodwill and popularity of President Muhammadu Buhari in the international community to seek debt relief in the face increasing debt profile.
According to him, though the economy is facing a myriad of challenges, such are too minute to compel the nation to ask for debt forgiveness.
He said: “Nigeria is not in a position to beg for forgiveness.
“We are still a strong economy.
“Although there are challenges, but we have not got to the stage to ask for debt forgiveness.”
Angered by Nwankwo’s position, Shehu queried the DMO Director General for the rationale behind his submission, pointing out that Nigerians lived in a more bouyant and robust economy in 2006 when the government of former President Olusegun Obasanjo exited the Paris Club by riding on the horse of debt forgiveness.
The Committee demanded for further explanation on why he felt it was more viable for the country to secure debt forgiveness 11 years ago than now.
Nwankwo said while defending his position on Debt relief: “Beyond that, I don’t think I have the mandate and I don’t want to presume that I have the capability to come here and pontificate on how all the problems of Nigeria can be resolved because that is not my mandate.
“And I will be very presumptuous to be saying that.”
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