Nigeria’s total debt has reached $46 trillion, according to the Debt Management Organization, or DMO.
The debt burden of N46.25 trillion will be transferred by President Muhammadu Buhari to the incoming administration.
DAILY POST reports that although the current heavy debt burden has caused many difficulties, the government said it has received World Bank approval for another N369 billion loan before the subsidy. fuel is canceled in June 2023.
During the eight years of Buhari’s administration, Nigeria’s debt record has grown from 12.6 trillion naira in 2015 to more than 46 trillion naira in 2023.
The situation continues to cause financial concerns, especially as the International Monetary Fund (IMF) says Nigeria has almost exhausted its coffers to repay its debt by 2022. The Federal Bureau of Internal Revenue says it has collected 10 trillion nairas in revenue in 2022, with a budget expenditure of 21.83 trillion naira in 2023 pegged at a deficit of 11.34 trillion naira.
The problem of sustainable debt and economic instability is currently suffocating Nigeria.
In this area, the heavy task of overcoming the country’s economic challenges will be assumed by Tinubu once he is sworn in on May 29, 2023.
However, economic experts say that it will be difficult to solve the problem of the heavily indebted Nigerian economy.
Speaking with DAILY POST on Monday, Prof. Bongo Adi, a professor of economics at Lagos Business School, said the debt Buhari’s government was saddled with mortgaged the country’s future with heavy obligations.
According to him, the next few days will be difficult for the Nigerian economy as Buhari leaves the country.
However, he said the only viable option is for the new government to seek to renegotiate the loan, as is international practice, provided the government is credible.