This year’s budget deficit is put at $6.03 billion and will be financed by both domestic and external loans. Thus, it requires to borrow, in one fell swoop or stagial, the sum of $29.96 billion to implement its programme. By 1975, the country took its first jumbo loan of $1.4 billion at a time its earnings from crude oil was looking good and needed more of investment for the rainy day. Nations in debt peonage do contend with debilitating interest rate whether the loans are concessionary or otherwise. In 2005, before exit from indebtedness, Nigeria’s external debt stood at about $32 billion.

Source: The Guardian January 27, 2020 03:56 UTC