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Abraham Nwankwo DG DMO

Nigeria’s debt profile hits $11bn – DMO

Abraham Nwankwo DG DMO
Abraham Nwankwo DG DMO

Director-General, Debt Management Office (DMO), Dr. Abraham Nwankwo has disclosed that Nigeria’s external debt profile has climbed to $11 billion as at October 2015 as against the $9.4 billion recorded in March, of the same year.

Domestic debt profile was said to have risen to N11 trillion.

Dr. Abraham Nwankwo, who however, noted that the quantum of the debt did not really matter, said the most important thing was how the resources were deployed to encourage economic growth, development, generate employment and reduce poverty.

According to him, the concern about debt is “whether you are in a position to pay back what you borrowed as at when due,” stressing that in the case of Nigeria, the debts remain sustainable.

“Let me emphasize that what matters is not just the quantum, what is important is how these resources are deployed to encourage growth, development, generate employment and reduce poverty”

“It matters whether you are in a position to pay back what you borrowed as at when due and in the case of Nigeria, I want to assure you that Nigeria’s debt remains sustainable.”

Dr. Abraham Nwankwo also emphasized that the collapse of oil prices was having a significant impact on economies all over the world.

“Because the Nigerian economy is very resilient and because the government is in control, Nigeria’s debts continue to remain sustainable.

“Based on current global economic problems, particularly the collapse of oil prices, this is having significant impact on economies all over the world. Because the Nigerian economy is very resilient and because the government is in control, Nigeria’s debts continue to remained sustainable.”

“Presently Nigeria owes, domestically, about N11 trillion and externally, about $11 billion. The figures are the total of all debts in the federation. It includes external debts of the federal and all the state governments as well as the domestic debts of the federal government and all the state governments.

Dr. Abraham Nwankwo noted that other countries like Venezuela and Russia that had been in similar position had had their currencies devalued very rapidly in the first 30 days of the oil shock.

“But you can observe that it was until about three or four months later that the CBN had to do some little adjustments with the exchange rate. Nigerians should be proud that the economy is so resilient, that we have enough food for our population and that food prices, in spite of what has happened in the past seven months or more continues to be moderate.

“That shows that over the years, we have attempted to improve, to diversify the economy, to strengthen our agriculture and that is a source of inspiration for all of us,” he said.

He therefore, urged Nigerians to use “the opportunity of President Muhammadu Buhari’s change to do better than we did in the past by working hard in making sure that agriculture continues to expand and modernize so that we can have real food security.”

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