N4.4 Trillion And Counting….Buhari Adds Another N2.2 trillion Debt, Blames PDP

The Buhari led government claims it has discovered a sum of N2.2 trillion in new debts owed by past PDP led administrations. According to a tweet from the government it said that these were “unrecorded debt owed contractors/private sector found on federal government books, inherited from previous administration,”

This is not the first time the government will be blaming past governments of mishandling the economy which ironically has fallen into a recession and in one of its worst currency crisis ever under its control.

The government claims the money was discovered after an audit “aimed at improving transparency”. The debts were owed to contractors, oil marketers, exporters and electricity distribution companies according to Finance Minister Kemi Adeosun.  She also claims the debt will be settled by issuing a 10-year promissory note. Nigeria last week announced a $ 1 billion Eurobond issuance which will be managed by Citigroup, Standard Chartered Bank and Stanbic IBTC Bank.

Nigeria’s public debt is currently at about N10.6 trillion last at June 2016 from bout N8.4 trillion just over a year ago (June 2015) when this government took over. The Buhari administration has thus added a whopping N2.2 trillion to Nigeria’s domestic debt profile. The N2.2 trillion it claims it has to add now will take Nigeria’s domestic debt to a record N12.8 trillion!!

Ugo Obi-chukwu https://nairametrics.com

Ugo Obi-chukwu "Ugodre" is a chartered accountant with over 16 years experience in financial management, corporate finance and financial analysis. He is also a retail investor and a personal finance advocate with over a decade experience investing in the Nigerian stock market. Ugo is the founder/Publisher of Nairametrics and blogs regularly on the website.

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