Nigerians paid ₦5 trillion for debt servicing

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Nigerians paid a huge sum of ₦5 trillion in repayment of loans and service charges within the period of 2011 to 2015.

Nigerians at large trusted our leaders to use the said fund borrowed from creditors to better the lot of Nigerians.

The figure was captured in the Debt Management Office’s (DMO) 2015 annual report.

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Although the Ministry of Finance is yet to make its usual trimestral release of funds captured in 2016 national budget, the Buhari led administration has already paid out about ₦446 billion to creditors in debt servicing.

Debt servicing is basically the amount set aside annually in a fund to pay the interest and the part of the original due on a debt.

Presently, our public debt (another way of saying the money Nigerians owe people we borrowed from) stands at N8.837 trillion.

That figure is for debts we owe people within Nigeria.

Our foreign debt profile stands over ₦30 trillion naira.

Many thanks to our politicians.

Breaking down the debt so far paid out, the Debt Management Office reports that $3.781 billion was used to service debt in 2011.

$4.918 billion for 2012; $5,520 billion in 2013; $5.500 billion for 2014; and $5.499 billion for 2015, respectively.

DMO’s report showed that our politicians spent ₦25billion on repayment of money owed and ₦993.13 billion on interest repayment in 2015.

The money was spent on our behalf. Again, thanks to our politicians.

According to the report, “The FGN’s domestic debt service as at the end of December, 2015, amounted to N1, 018.13 billion compared to N865.81 billion in the corresponding period of 2014, representing an increase of N152.32 billion or 17.59 per cent.

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“This amount comprised principal repayment of N25 billion and interest payment of N993.13 billion.

“By instrument-type, FGN bonds debt service accounted for 62.41 per cent of the total debt service payment, while payments in respect of the Nigerian Treasury Bills and Treasury Bonds were 31.83 and 5.76 per cent, respectively.

What these monies were used for is yet to be seen. Generations to come will be paying for our carelessness and that of our leaders.