F𝐄𝐃𝐄𝐑𝐀𝐋 π†πŽπ•π„π‘ππŒπ„ππ“ 𝐎F ππˆπ†π„π‘πˆπ€: πƒπŽπŒπ„π’π“πˆπ‚ 𝐃𝐄𝐁𝐓 π’π“πŽπ‚πŠ, F𝐔𝐄𝐋 ππ‘πˆπ‚π„ 𝐀𝐍𝐃 𝐂𝐑𝐔𝐃𝐄 πŽπˆπ‹ π„π€π‘ππˆππ†π’ Fπ‘πŽπŒ πŒπ€π˜ πŸ‘πŸŽ, πŸπŸŽπŸπŸ“ π“πŽ πƒπ„π‚π„πŒππ„π‘ πŸ‘πŸ, πŸπŸŽπŸπŸ’

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Nigeria's (FG only) domestic debt as at June 30, 2015 was 8.4 trillion Naira (N8.4trn).

Nigeria's (FG only) domestic debt as at June 30, 2023 was 48. 31 trillion Naira (N48.31trn). This amount included N22.7 trillion Ways and Means the Federal Government of Nigeria borrowed from Central Bank of Nigeria largely to subsidize electricity cost.

So in essence, the Federal Government domestically borrowed 39.91trillion Naira (N39.91) in eight years, i.e. from July 1, 2015 to June 30, 2023. This translated to an average yearly domestic borrowing of 4.99 trillion Naira (N4.99trn) in the eight years period (July 1, 2015 and June 30, 2023).

Nigeria's (FG only) domestic debt as at December 31, 2024 was 70.41 trillion Naira (N70.41trn). This meant that in eighteen months (July 1, 2023 to December 31, 2024), the Federal Government of Nigeria domestically borrowed 22.11 trillion Naira (N22.11trn). This is more than half of the N39.91 trillion Naira (N39.11trn) that the immediate past administration domestically borrowed in eight year. By yearly average, the 22.11 trillion Naira (N22.11trn) borrowed by the current administrator translated to 14.74 trillion Naira (N14.74trn) every year. 

This amount is more than 290% average yearly domestic borrowing of the immediate past administration. Honestly this is frightening to say the least. Especially for the fact that fuel price has been increased by over 390% since June 2023. It was about N200/ litre in May 2023, it is about N950/litre today. It was sold over N1,000/litre at some point though was also about N500, N600 and N650 a litre at different times in the last 18 months. However, additional revenue from fuel sales increased by at least 390%.

According to the President of Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria consumes not less than 45 million litres of fuel daily. The difference between the price of a litre of fuel today and the price in May 2023 is at least N730. This translated to N32.85 bn daily and N821.3bn every month (25 days was used as one month). In the eighteen months period under review, the Federal Government got an additional 14.7 trillion Naira (N14.7trn) as a result of the increase in fuel price. To avoid exaggeration, this can be approximated to N10 trillion because fuel was sold at N488, N600, N800 and even N1,000 plus at some times before it got to the current price of N930. 

This amount approximated to N10trn is owned by the three tiers of Government and not the FGN only, FGN 52% share is 5.2 trillion Naira only. So the current Federal Government got at least N5.2 trillion Naira additional revenue due to the significant increase in fuel price. It is strange that despite getting at least an additional N5.2 trillion in 18 months, the current government still domestically borrowed over half of what the preceding government borrowed in eight years.

Additional revenue from sale of crude oil due to the astronomical devaluation of the Naira is also very huge. Nigeria earns about 2 billion USD ($2bn) from crude oil export every month. As at May 2023, this amount ($2bn) when converted to Naira is N920 billion at the exchange rate of N460/$ Currently, the exchange rate is N1,600/$. Using this rate, $2bn is 3.2 trillion Naira (N3.2trn). Due to fluctuation, an average exchange rate of N1,200/$ can be applied. With this, the present Federal Government makes at least 2.4 trillion Naira (N2.4 trillion) every month from crude oil proceeds due to the astronomical devaluation of the Naira. 

This huge amount is N1.48 trillion more than the amount the immediate past Federal Government made for the Federation every month. The assumption here is that oil production was not increased. There are testimonies that production increased but the assumption remains.

Accordingly, in eighteen months (July 1, 2023 to December 31, 2024), the current Federal Government of Nigeria earned 43.2 trillion Naira (N43.2trn) for the entire Federation. If the value of Naira wasn't tampered with, (i.e. if the exchange rate of N460/$ was used), the amount earned would have been 15.56 trillion Naira (N15.56trn). Thus the total ADDITIONAL revenue generated by the current FGN for the Federation is 26.64 trillion (N26.64trn) from crude oil proceeds! Wow! Just wow! This is huge! Very huge! 

However, since, only 52% of this amount will go to FG. This conversation will be limited to that only. Thus what will be allocated to FGN only is 13.85 trillion (N13.85trn).

In total, the current leadership of the Federal Government of Nigeria has in eighteen months (July 1, 2023 to December 31, 2024), earned at least 19.05 trillion Naira (N19.05trn) πŒπŽπ‘π„ 𝐓𝐇𝐀𝐍 what its immediate predecessor could have ever earned from sale of petrol and proceeds from crude oil exports due to astronomical hikes in the prices of fuel and foreign currencies. 

Despite these huge additional revenues, the current government significantly increased yearly average domestic borrowing by over 190% as average yearly domestic borrowing of 4.99 trillion Naira (N4.99trn) between July 2015 and June 2023 increased to 14.74 trillion Naira (N14.74trn) between July 2023 to December 2024.

β„‚β„π•Œπ•‚π•Žπ•Œπ”Όπ•„π”Όπ•‚π”Έ 𝕆J𝕀𝔼𝕃𝕆

π”Όπ”Έπ•Šπ•‹π”Όβ„ π•Šπ•Œβ„•π”»π”Έπ•, 𝔸ℙℝ𝕀𝕃 𝟚𝟘, 𝟚𝟘𝟚𝟝.

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