Nigeria may see 38 trillion naira public debt wiped off as UN chief propose debt relief, post-COVID investment to weather the impacts of Russia, Ukraine war…

0
209
  • Total public debt: N39.556 trillion. …
  • Debt to GDP Ratio 22.47%. …
  • Legality of new borrowings. …
  • Revenue to GDP ratio 9.0%. …
  • Budget deficit N6.449 trillion. …
    Projected incremental borrowing 1 trillion. .
  • Debt management tools: DSA, MTDS. …
  • Sukuk project-tied financing NGN250 billion. …
  • Debt to GDP 22.47% relatively low, poor revenue generation makes it bad. …

U.N. Secretary-General Antonio Guterres on Sunday urged debt relief for African countries and more investment to help their economies recover from the COVID-19 pandemic and weather the impacts of the Ukraine war.

The United Nations chief spoke in Senegal on the first leg of a trip that will also include Niger and Nigeria, where he will visit communities affected by conflict and climate change.

Meanwhile Nigeria May see it’s total public debt rose to 38 trillion naira ($92.75 billion) wiped off if the international institutions like world bank and IMF considers the proposal, Naija247News explains.

Africa’s largest economy has been racking up debt to fund infrastructure projects and boost a fragile economy now recovering from recession following the impact of an oil price crash triggered by the coronavirus pandemic.

Total public debt stood at 32.22 trillion naira in the third quarter of 2020.

Africa’s External Public debt
Findings by Naija247news says as of Jun 9, 2021 As of 2021, the total external public debt in Africa reached 726.55 billion U.S. dollars. Compared to the previous year, the amount of foreign public debt increased from 696.69 billion U.S. dollars.

Supply disruptions due to Russia’s invasion of Ukraine have caused simultaneous food, energy and finance crises in Africa and beyond, Guterres said.

The coronavirus pandemic pushed many poor countries into debt distress and the Ukraine war has disrupted their economic recovery, according to the International Monetary Fund (IMF). Public debt ratios in sub-Saharan Africa are at their highest in more than two decades, the IMF said last week.

International financial institutions must urgently put in place debt relief measures by increasing liquidity and fiscal space, so that governments can avoid default and invest in social safety nets and sustainable development,” Guterres said.

The United Nations has made proposals to the World Bank and the IMF regarding the mobilization of various funds and debt relief instruments, but so far the measures taken have been insufficient, he added.

He called on wealthy countries and pharmaceutical companies to accelerate donations of COVID-19 vaccines and invest in local vaccine production, with almost 80% of the African population still not vaccinated against COVID-19.

“Beyond vaccination, we see big imbalances when it comes to investments in post-COVID recovery,” he said, adding that economic growth per capita is projected to be 75% lower in Africa than in the rest of the world over the next five years.

Guterres said he visited a vaccine manufacturing unit in Dakar with Senegal’s president Macky Sall which will soon be equipped to produce vaccines against COVID-19 and other diseases.

An executive at South Africa’s Aspen Pharmacare told Reuters earlier, however, that Africa’s first COVID-19 vaccination plant, touted as a trailblazer last year, now risks shutting down after receiving not a single order.