The Director General of the Debt Management Office (DMO), Abraham Nwankwo has said Nigeria debt profile for both domestic and external debts as at December 31,2015 stands at 12 trillion naira.
This is even as he revealed that the 2016 appropriation budget allows the government to borrow an additional 1 trillion, eight hundred and eighty four billion naira.
The DG stated this in a paper delivered at a one day Enlightenment workshop for the Nigerian Union of Journalists (NUJ) which held in Abuja Yesterday, with the theme ‘ Debt Sustainability and the Challenge of Financing Economic Recovery’ Giving a breakdown of the amount to be borrowed which includes external borrowing of N900 billion and domestic borrowing of N984billion naira respectively, he said, “The logic is to re- balance total public stock in favor of less costly external funds.
The logic in the 2016 borrowing is to borrow from external sources to reduce the cost of debt servicing. Nwankwo noted that there was nothing wrong in Nigerian borrowing because in modern economies almost every government runs deficit budget.
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