Breaking news on nigerian debt profile newspaper
BREAKING NEWS
NIGERIA'S DEBT PROFILE SOARS TO N32.2 TRILLION, SAYS DMO
Lagos, Nigeria - The Debt Management Office (DMO) has released a shocking report revealing that Nigeria's total debt profile has risen to a staggering N32.2 trillion as of June 2022.
According to the report, the country's debt profile has increased by N1.2 trillion in the first half of 2022, with the federal government accounting for N22.7 trillion of the total debt.
The breakdown of the debt profile shows that:
- Federal Government: N22.7 trillion
- States: N4.4 trillion
- Federal Capital Territory (FCT): N143 billion
- Federal Government's foreign debt: N12.3 trillion
- Federal Government's domestic debt: N10.4 trillion
- States' foreign debt: N1.1 trillion
- States' domestic debt: N3.3 trillion
The DMO attributed the increase in debt to the country's growing infrastructure needs, including the construction of new roads, bridges, and other public projects.
ECONOMIC EXPERTS RAISE CONCERNS
Economic experts have expressed concerns over the rising debt profile, warning that it could have negative implications for the country's economy.
"We are worried about the increasing debt profile, as it could lead to a debt crisis if not managed properly," said Dr. Bismarck Rewane, a renowned economist.
"Rising debt can lead to a decrease in foreign investment, increased borrowing costs, and reduced government spending on essential services," he added.
GOVERNMENT PROMISES TO MANAGE DEBT RESPONSIBLY
The Federal Government has promised to manage the debt responsibly, assuring that it will not compromise the country's economic stability.
"We are committed to managing our debt responsibly and ensuring that it does not compromise our economic stability," said the Minister of Finance, Budget, and National Planning, Zainab Ahmed.
"We will continue to prioritize debt sustainability and ensure that our debt profile is managed in a way that benefits the country and its citizens," she added.
WHAT THIS MEANS FOR NIGERIANS
The rising debt profile could have significant implications for Nigerians, including:
- Increased borrowing costs: As the government borrows more money, the cost of borrowing could increase, leading to higher interest rates and reduced access to credit for individuals and businesses.
- Reduced government spending: The government may have to reduce its spending on essential services, such as healthcare and education, to service its debt.
- Increased taxes: The government may increase taxes to service its debt, which could lead to reduced disposable income for individuals and businesses.
As the country grapples with its rising debt profile, Nigerians are left wondering what the future holds for the country's economy.