Nigeria has borrowed N225.93 trillion in the last 20 years, which is nearly double the N114.464trn it earned within the same period, an official publication has revealed. Experts who spoke to Daily Trust described the situation as worrisome for a largely oil-dependent economy.
According to the 2021 Statistics Bulletin on Public Finance of the Central Bank of Nigeria (CBN), published May 2022 and obtained by our reporter, the revenues and debts were to the federal government, the 36 state governments, and the 774 local government areas, from 2001 to 2021.
How govts’ shared N114trn earnings
Our analysis of CBN’s financial record showed that from the N114trn, the federal government got N50.020trn, the states got N31.147trn, and local government areas got N23.625trn.
However, the balance of N9.670trn was freed up as a 13 percent derivation fund, which is for the oil-producing states – Delta, Akwa Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, Lagos, and Abia – as enshrined in section 162 sub-section 2 of the Nigerian constitution to assist their oil-producing communities in tackling environmental pollution and degradation. Reports show that Akwa Ibom, Rivers, Bayelsa and Delta States produce 95% of the oil in Nigeria.
Read more: https://dailytrust.com/how-nigeria-borrowed-n225trn-in-20-years