Fakoyejo OlalekanThe Federal Government is owed N5.2 trillion in debts by over 5,000 companies and individuals who have refused to meet their debt obligations.
Director of Special Projects in the Federal Ministry of Finance, Budget and National Planning, Victor Omata, who represented Zainab Ahmed at a two-day sensitisation workshop, said the debt is owed to 19 ministries, departments and agencies.
“The Ministry through the consolidation efforts of the Debt Analytics and Reporting Application has been able to aggregate monumental debts of approximately N5.2 trillion.
“These debts came to the spotlight from data aggregated from over 5,000+ debtors across 10 Ministries, Departments, and Agencies,” the director stated.
Breakdown of Creditor MDAs
With debt aggregation effort still ongoing, Omata disclosed that part of the debt is owed to the Federal Inland Revenue Service (FIRS).
Also, companies that failed to deliver on projects for which payment had been effected are owing the federal government. The Bank of Industry and Bank of Agriculture are yet to receive repayment of credit facilities granted to both corporate entities and individuals.
Omata disclosed that judgment debt in favour of Government hasn’t been fulfilled, and Insurance Companies are owing the Pension Transitional Arrangement Directorate.
“These debts are in the form of debt liabilities to the Federal Inland Revenue Service; refunds to the government by companies who failed to deliver on projects for which payment had been effected, unpaid credit facilities granted to both corporate entities and individuals by the Bank of Industry and Bank of Agriculture; judgment debt in favour of Government, debts owed Pension Transitional Arrangement Directorate by Insurance Companies among others.”
FG also owes creditors
While the government is owed by over 5,000 companies and individuals, FG is also owing domestic and global creditors, and this is affecting investors confidence in the country’s economy.
The Central Bank of Nigeria (CBN) had stated that an estimated total public debt of $151.3 billion is owed by Nigerian government as of June 2022.
This is higher than the estimated $103.3 billion total public debt disclosed by the Debt Management Office (DMO).
Prime Business Africa gathered that the debt estimated by the central bank includes the N22 trillion Ways and Means lending to the government as of September.
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