Life is getting tougher in Nigeria, according to stays from the National Bureau of Statistics, but the country continues to wallow in debt with latest figures from the Debt Management Office (DMO) showing that we owe in public debts a whopping sum of N46.25 trillion or $103.11 billion at the close of business in Year 2022.
A huge bulk of the debt was incurred by the present administration, which has barely 60 days in place, amid reports that a tranch of $973 million (about N450 billion) of the debt for the modernisation of the Kaduna-Kano railway line may not be coming through from the Chinese financiers, the China Exim Bank.
But the Federal Government is not deterred as it continues to look for other financiers from China and elsewhere to finance the rail line project.
In its latest report, the Debt Management Office (DMO) says the stock rose to the current figure from its previous December 2021 figure of N39.56 trillion or $95.77 to the N46.25 trillion in 2022.
The domestic component was N27.55 trillion or $61.42 billion while the foreign component was N18.70 trillion or $41.69 billion.
“As of December 31, 2023, the total public debt stock consisting of the domestic and external debt stock of the Federal government and the 36 States and the FCT was N46.25 trillion or $103.11 billion. The comparative figure for December 31, 2021 i,s N39.56 trillion or $95.77 billion”, according to the DMO.
Much of the new debts arose from new borrowings by both the federal and state governmens, primarily to fund the budget deficit and execute projects, the DMO said.
Promissory notes issued by the federal government to settle some liabilities contributed to the growth of the public debt stock.
Recall that media reports earlier this week said the House of Representatives approved the change of financier for modernisation of the Kaduna–Kano rail line.
China Development Bank (CDB) was to take over China Exim Bank, which pulled the plug on that part of the loan due to the impact of COVID-19.
Despite complaints by top government officials, including then Minister of Transportation, Mr. Rotimi Amaechi, last year, the China EXIM pulled out.
In the House of Reps on Tuesday by Hassan Fulata from Jigawa State, a contiguous State to Kano sought the modification to the $22.7 billion 2016–2018 Federal Government External Borrowing (Rolling) Plan.
The $22.7billion External Borrowing (Rolling) Plan was approved by the Senate and the House of Representatives on 5 March 2020 and 2 June 2020, respectively.
Fulata said that the Ministry of Transportation and the CCECC Nigeria Limited engaged China Development Bank following the withdrawal of China Exim bank.
He said that the Federal Ministry of Finance wrote the House for approval to change the financier.
“To secure funds for the project, the Contractor (CCECC Nigeria Limited) in collaboration with the Federal Ministry of Transportation engaged China Development Bank (CDB) as the new financier in the sum of $973,474,971.38,” he said.
The Chairman of the House Committee on Agreement, Treaties, and Protocol, Nicholas Ossai, insisted that the minister of finance must provide the new details on the agreement before the approval is granted.
“We are changing from China Exim Bank to China Development bank, which means the addition of another agreement. If we are going to pass this resolution, that means the members of this House won’t see those agreements.
“The minister of finance should come with the agreement as agreed with the Development Bank of China so that members can be guided when approving such a loan,” he said.
House Speaker, Mr. Femi Gbajabiamila, shot down Ossai’s position, and the proponents of the motion carried the day.
