Nigeria still owes $22b after paying
$40.2b to IMF for $36b principal
The director general of the Debt Management Office, Mr. Akin Arikawe in his testimony before the House of Representatives Committee investigating the national treasury in Abuja, Wednesday July 10, said the federal government has paid $6b dollars out
of $28b foreign debt owed in the last two years.
He said that out of the $26 billion debt, $22 billion was owed the Paris Club. Out of the Paris Club debt, 85 percent was incurred between 1980 and 1984. This period was during the reign of former President, Alhaji Shehu Shagari. Then the initial
principal borrowed was $13.5 billion. But as at date,
Mr. Arikawe said, �we have paid $40.2 billion and we are still owing $22 billion. At the time the loans were taken the interest rate was 3 per cent, but rose to 15 per cent by 1990. Currently, the interest rate has come down to 5.2 per cent."
The House Committee Chairman, Hon. Mao Ohuabun
wa after cross-examinng Mr. Arikawe, Chided the Debt Management Office for violating the constitutional provision on virement of fund by exceeding 50 million Naira, which is the legal limit. The alleged excess amount, Hon. Ohuabunwa said, was to spent to
augment the personnel budget of the Debt Management Office, and this he strongly condemned.
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