The rate of borrowing money in Nigeria has increased over the years. The current president of Nigeria Muhammadu Buhari has borrowed the largest amount of money so far.
Former president Obasanjo to current president Buhari borrowed money, the chart shows how FG’s debt profile surged 658% to N26.9trn in 21 year.
Nigeria’s public debt has been on the rise. Despite securing debt relief during the Olusegun Obasanjo led administration, successive governments have continued on a borrowing spree the federal government’s component of the public debt surging 658 percent to N26.9 trillion in the last 21 years.
This has raised concerns among Nigerians on the debt sustainability of the country amid dwindling revenue to meet the debt obligations to creditors.Within two weeks, the senate approved three different loan requests by President Muhammadu Buhari.On July 7, 2021, the upper chamber approved a loan request of 2.343 trillion, approximately $6 billion and another $8.3 billion and €490 million.
Defending one of the loan requests, the Debt Management Office (DMO) said it is part of a borrowing plan for the 2021 budget.“The proposed new capital raising is the new external borrowing provided in the 2021 Appropriation Act to part finance the deficit in the budget. In other words, the new capital raising has already been approved in the budgetary process by the executive and legislative arms of government,” the DMO had said in a statement.
As of March 2021, Nigeria’s total public debt has hit N33.1 trillion ($87.24 billion) an accumulation of borrowings from successive governments, of which most were borrowed since the return to democratic rule in 1999. The rate in which the country Nigeria borrow funds is much, the country has been trying to revive it’s industries and the agricultural sector.
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