How the Nigerian Railway Modernisation Project (Lagos – Ibadan section) loan got $1.267 billion lion share + data on projects and how much was borrowed to finance them
Nigeria’s total debt stock comprising federal, states and the Federal Capital Territory (FCT) stood at N33.107 trillion or $87.239 billion as at March 31, 2021.
Platforms Africa reports that the country’s Debt Management Office (DMO) confirmed this in the latest debt stock update last night, declaring that this included Promissory Notes in the sum of N940.220 billion, which have been issued to settle the inherited subsidy debts to oil marketing companies, exporters and local contractors as well as arrears of the FGN to state governments.
The companies are members of Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria(IPMAN), Depots And Petroleum Marketer Association of Nigeria (DAPPMAN) among others.
The debt Stock, DMO stated, included Promissory Notes in the sum of N940.220 billion issued to settle the inherited arrears of the FGN to state governments, these oil marketing companies, exporters and local contractors.
Compared to the total public debt stock of N32.916 trillion as at December 31, 2020, the increase is marginal at 0.58 per cent.
Further analysis of the debt stock, according to Platforms Africa, shows that the increase was in the Domestic Debt Stock, which grew by 2.11 per cent from N20.21 trillion in December 2020 to N20.637 trillion as at March 31, 2021.
The Nigerian Government’s share of the domestic debt includes FGN Bonds, Sukuk and Green Bonds used to finance infrastructure and other capital projects as well as the N940.220 billion Promissory Notes.
External debt stock declined from $33.348 billion as at December 31, 2020 to $32.86 billion due to the redemption by Nigeria of the $500 million Eurobond in January 2021.
Platforms Africa reports that in April this year when public criticism over Nigeria rate of debt contractions gained traction, with special reference to country indebtedness to China, DMO gave out figures of debt contracted through the China Export-Import (EXIM) Bank. It put the debt at $3.714 billion as at December 31, 2020 adding that $449.89 million had been repaid from the principal and $391.66 million, as interest, with an outstanding of $3.264 billion.
The Nigerian Railway Modernisation Project (Lagos – Ibadan section) loan of $1.267 billion, which was contracted on August 18, 2017, stood out as the single largest facility from the Chinese to the country