Nigeria’s debt hits $32.5bn

Nigeria’s debt hits $32.5bn

Headlines Nov 8, 2010 By Inalegwu Shaibu
ABUJA—Chairman Senate Committee on Local and Foreign Debt, Senator Ehigie Uzamare, Monday, disclosed that Nigeria’s debt had risen to $32.5 billion. This comprises $4.5 billion foreign and $28 billion local debt.
Senator Uzamare, who made the disclosure at the public hearing on the Debt Management Office Bill, called for caution in government borrowing, despite the importance of external borrowing to fund developmental projects.
He said: “Currently, our external debt stands at $4.5 billion, domestic debt is valued at over $28 billion and is rising. Debt is good if well managed. We must borrow to grow the economy. At this level of our economy and national development, we need to borrow to finance budget gaps and fund infrastructural development.
It is essential that we regulate our borrowings otherwise we find ourselves with a huge debt overhang again.”
Senate urges caution over borrowing
Also lamenting the rising debt, Senate President, Senator David Mark represented by Senator Ahmed Markafi, said the Debt Management Office must be properly empowered to scrutinise government borrowing.
Senator Mark who also blamed the rising debt on indiscriminate borrowings by states and local governments, and Federal Government misguided partnerships with private companies, called for caution in government borrowings.
He added that government at all levels must avoid borrowing for frivolous reasons except for development projects and job creations which will fast track the repayment of the loan.
His words, “I do hope that State Governors and Chairmen of Local Governments who are entitled to borrow money under this act will abide by the provisions of the act and exhibit high sense of fiscal responsibility in managing the fund so borrowed. We must work together, keep our debt at a manageable level. I say this because at the end of the day, we have only one economy.”