FG Raises Borrowing Limit To N61tn

Minister of Finance 

The Federal Government of Nigeria has raised the borrowing limit to accommodate more loans.

Nigeria’s current debt portfolio of N33.11 trillion can now be extended to N61 trillion with the latest adjustment put in place by the Federal Government.

As revealed, the new borrowing limit documented in the Medium Term Debt Strategy indicates that Nigeria raised its borrowing limit to 40 percent of the Gross Domestic Product against the previous 25 percent limit of the GDP.

At the moment, twenty-five per cent of the current GDP is N38.08tn, an amount which is speculated to have been surpassed, given that some loans which are secured are yet to be included in the debt stock.

Report has it that as of December 31, 2020, the National Bureau of Statistics pegged the country’s GDP at N152.32tn. Thus, forty per cent of the current GDP is N60.93tn.

Read Also: Debt Profile: Nigeria’s Debt To Hit N48 Trillion By 2024

The update came amidst the Senate giving new approvals to the Federal Government to borrow $8.33bn and €490m from external sources.

It now become evident that Nigeria can borrow as much as N61 trillion and by such venture push the current N33.11 trillion towards a possible expansion of up to N27.82 trillion.