President Muhammadu Buhari has requested lawmakers approval to restructure a total of N23.7 trillion ($53 billion) in short-term loans owed to the Central Bank to 40-year debt at 9% interest.
This is according to a letter the President sent to the parliament, seeking approval for the transaction.
Nigeria has struggled with low revenues due to crude oil theft in the oil region. A senate investigation found that oil theft cost the nation more than $2 billion during the first eight months of this year.
Last month, Fitch downgraded Nigeria’s rating to ‘B-‘ with a stable outlook, in part because of a deterioration in its debt servicing.
Buhari said the government owed N22.7 trillion ($51 billion) as of Dec. 19 to the central bank, in temporary advances, describing it as “short-term or emergency finance to fund delayed government expected cash receipts”.
In a letter to parliament dated Dec. 20, Buhari sought approval for an extra N1 trillion naira advance to government from central bank.
This week Buhari requested an extra N819.5 billion ($2 billion) in 2022 spending, which he will be financed by local borrowing.
Nigeria’s total public debt rose to N44.06 trillion ($101.91 billion) as at September 30, 2022.
The nation’s total public debt stood at N38 trillion ($92.63 billion) as at September 30, 2021.
The government did not disclose the level of interest currently being paid on the debt that is to be restructured.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
