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The federal government has said the increased level of borrowing since 2015 was due to the collapse in revenues from crude oil.
TheNewsGuru.com (TNG) reports Patience Oniha, Director General of the Debt Management Office (DMO), Nigeria made this known on Wednesday.
She stated that the level of new borrowing started trending downwards from 2018 up to the first 2020 Appropriation Act.
“Unfortunately, the adverse impact of COVID-19 on revenues and increased spending, have resulted in higher levels of borrowing,” she said.
Oniha explained that the public debt figures published by DMO are the debt stock of the federal government, the 36 states and the FCT.
“I am compelled to respond to some recent comments about the level of Nigeria’s Public Debt.
“Firstly, it is useful to state that the Public Debt figures published by @DMONigeria are the Debt Stock of the FGN, the 36 states and the FCT.
“That is, the Debt is not only that of the FGN as the FGN, state governments and the FCT have all been borrowing.
“At the Federal level, the increased level of borrowing since 2015 was due to the collapse in revenues from crude oil.
“The level of New Borrowing started trending downwards from 2018 up to the first 2020 Appropriation Act.
“Unfortunately, the adverse impact of COVID-19 on revenues and increased spending, have resulted in higher levels of borrowing.
“While @DMONigeria, using the DSA and MTDS, manages the public debt to ensure that Nigeria’s public debt is sustainable and that borrowing is done at the lowest possible cost, growth in revenues remain a key focus of fiscal authorities,” Oniha stated.