Nigerians have been questioning the rationale for the revelation that the Federal Government’s total debt to the Central Bank of Nigeria, CBN has risen from N17.46tn as of December 2021 to N19.01tn as of April 2022.
According to data gathered from the CBN, this shows an increase of N1.55tn in the first four months of 2022.
The N19.01tn which the Federal Government owes the apex bank is not part of the country’s total public debt stock, which was calculated to be N41.60tn as of March 2022, according to analysis by the Debt Management Office.
The public debt stock only covers the debts of the Federal Government of Nigeria, the 36 state governments, and the FCT.
Section 38 of the CBN Act, 2007, states that the apex bank may grant temporary advances to the Federal Government regarding temporary deficiency of budget revenue at interest rate which the bank may determine.
The Act reads in part, “The total amount of such advances outstanding shall not at any time exceed five per cent of the previous year’s actual revenue of the Federal Government.
“All advances shall be repaid as soon as possible and shall, in any event, be repayable by the end of the Federal Government financial year in which they are granted and if such advances remain unpaid at the end of the year, the power of the bank to grant such further advances in any subsequent year shall not be exercisable, unless the outstanding advances have been repaid.”
Reacting to the revelation of the new debt of the Federal Government to the CBN, some Nigerians went to social media to ventilate their comments:
@theonly1acre: At this point, I envisage it would only be fool hardy for anyone to find the nerve to openly push APC as an alternative. The PDP years cleared out the debts incurred by past military governments. We need them to hit the ground running.
@ugorji_ugonna: What industry are they borrowing for, what is the productiveness of their borrowing in order to pay back with the profits generated from such investment? Nothing. It is an obvious borrowing for consumption, for the 2023 election. They are borrowing so much yet to pay ASUU na war.
@aroakalami95: These three people have damaged Nigerian economy beyond what the next president can handle for the next 4yrs
@iamobiamaefule: APC and Buhari government, what else is left. Killings, abductions, inflation, hunger and heavy burden of debt. Chai!
@bensico3: These 3 heads kill the economy of this country, they don’t have way of solving problems than to create more