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Each Citizen Now Owes Over N200,000 As Nigeria Loan Debt Increase After FG Takes Another N2.04trn Loan In 3 Months (Details below)

Published

2 years ago

June 11, 2022

Each Nigerian is now owing at least N201,941 as their share of the country’s debt. It is the most each Nigerian would owe as a function of debt per capita (or debt per person). The current level is a jump from N45,173 owed by each Nigerian when January 2013 started, to N159,675 at the beginning of last year (2021), Edujandon.com analysis has shown.

According to data released on Tuesday, 7 June by the Debt Management Office (DMO), Nigeria’s total debt as of March 31, 2022, increased to N41.60 trillion from N39.55 trillion as of the end of 2021.

This indicates that between January and March, the federal government, State borrowed N2.04 trillion. Citizens’ debts on the rise When the debt stock of N41.60 trillion is divided by an estimated population of 206 million according to World Bank data, it gives N201,941(earlier referenced) as a representation of what the debt per head or debt per capita translates into. This is a N10,051 increase when compared to N191,889 it stood as at December 2021.

When non-Nigerians who are part of the population estimate are removed, the debt owed by every Nigerian would increase, at least theoretically.

Naira falls to a new low against Dollar, Euro, Pound at official market as politics takes centre stage Years of debt increase Nigeria’s public debt stock has been on the rise, so does what every Nigerian owes when all of the country’s debts (Federal, State and FCT) are divided per person. Debt per capita for a year is calculated as what was owed at the end of the previous year, which would be the opening debt stock for that year.

The country’s ballooning debt stock has been a source of concern in recent years, with several commentators warning of a potential debt trap, which future generations may be saddled with and arguable benefits to be seen from the rapidly increasing borrowing.

Edujandon.com had earlier reported that the IMF raised concern on Nigeria’s growing debt, as it feared that 100 per cent of Nigeria’s revenue could be spent to service debts by the administration that succeeds President Buhari.