By: Ajibade Morakinyo
Federal Government of Nigeria has spent the sum of N1.094.22 trillion on debt servicing between the period of January and September 2016.
This was according to 2016 draft on budget implementation and performance monitoring report for the third quarter that was presented by the Minister of State for Budget and National Planning, Zainab Ahmed, at an event titled “Promoting Effective Policy Monitoring and Evaluating and Performance of Ministers, Department and Agencies in the implementation of the 2016 Budget of Change” in Abuja, yesterday.
Meanwhile, the N1.044 trillion was used to service local debt, against the N980.55 billion budgeted in the 2016 spending plan, representing N63.45 billion. The sum of N50.22 billion was spent for external debt servicing, marking N9.36 billion increase from the N40.86 billion budgeted.
According to the Minister, “the increase in the external debt stock in the third quarter of 2016 was due largely to the rise in Non-Paris Club Bilateral Debts draw down.”
It will be recalled that some factors such as the crash of oil prices in the International market, crude oil theft, illegal bunkering and militancy in the oil-rich Niger Delta affected the earnings of the country.
However, the 2016 budget had a total appropriation of N6.06trillion with recurrent (Non Debt).