2022: $41BN FOREIGN DEBT. SEE HOW MUCH EACH NIGERIAN OWES 

Did you know that with the current foreign debt of US$41 billion as of December 2022, each Nigerian currently owes N10,372 to the five countries Nigeria is indebted to, with China leading the most indebted of countries being owed?

The Debt Management Office has revealed that Nigeria's foreign debt to countries, organizations, and investors has risen to $41.7 billion as of December 2022, an 8.62 percent increase from the $38.39 billion recorded at December 2021. 

A breakdown from DMO foreign debt data shows that Nigeria is owing five countries $4.46 billion, which is N2.51 trillion in Naira at an exchange rate of N460/$. The countries that Nigeria over the years have borrowed from are: France, China, Japan, India, and Germany. As expected, Nigeria owes more to China that the other countries including France and Germany.

The debts to the countries were reached through various bilateral agreements with the countries' lending institutions. But how much is Nigeria owing countries? 

Unsurprisingly, China through its lending institution, the Exim Bank of China, is owed the largest amount of debt. As of the end of December 2022, Nigeria's debt to China stands at $3.63 billion (N1.66trn) while Nigeria borrowed from France through Agence Francaise Development the sum of $561.60 million (N260.12bn). 

The Federal Government (FG) is also owing Japan through Japan International Cooperation Agency $71.79 million (N33.34 billion); India through its Exim Bank of India loan to Nigerian $33.48 million (N15.55bn), and Germany through Kreditanstalt Fur Wiederaufbua $164.27 million (N76.30bn).

So, when computed per head, how much do Nigerians owe each country? In terms of debt per capita which is calculated as the total public debt of a country divided by the country’s population, each Nigerian currently owes N10,372 to the five countries. 

However, the population figure used for the calculation is 200 million and the breakdown of each citizen's debts to countries are: China - N8,430; France - N1,300; Germany - N381; Japan - N166.7; India - N77.75. 

But is Nigeria done yet with borrowing? Just recently, it was reported that the Chinese Development Bank rejected the FG's request for a $22 billion loan, prompting the House of Representatives to approve a counter-request for another loan. It was said that the rejected loan was intended to fund the Nigerian Railway Modernisation Project's Kaduna-Kano segment. 

Source: Legit.ng | Image Credit: Vanguard