Thread by @AjuriNgelale

Friends,

Also Note That Proponents Of The False "Debt Crisis" Narrative Try To Fool Us With An Emphasis On External Borrowing Rather Than Total Public Debt Which Encompasses All.

Please Note How President @MBuhari Has Restructured 🇳🇬's Debt...

#Thread

https://twitter.com/BudgITng/status/1200303820385005568?s=19

External Borrowing Offers Loan Terms Which Come With Longer Tenors & Average Interest Rates Of Between (2% - 9%)

Domestic Borrowing Tends To Offer Less Favorable Terms With Much Higher Interest Rates (13% - 24%)

More Domestic Borrowing Means Higher Debt Servicing Payments.

👇🏽

In 2015, President @MBuhari Inherited A Total Debt Ratio Of 86% (Domestic - High Interest) To 14% (External - Lower Interest). Huge Majority Of Debt Was High-Interest Debt With Higher Repayment. 86%-14%.

He Then Strategically Took Out More Low Interest, External Debt To Replace

High Interest Domestic Borrowing To Bring Down The Servicing Costs Of Our National Debt, Including The $67Bn USD Taken Out Before Him.

Our Restructured Debt Ratio Under @MBuhari Is Now 68% (High Interest Domestic Debt) To 32% (Lower Interest External Debt).

86/14 Down To 68/32.

Therefore, External Borrowing Has Gone Up Because It Comes With More Favourable Terms For Project-Tied Loans And Also Saves Us Money In Debt Servicing Payments Through @MBuhari's Landmark Debt Restructuring Program.

google.com/amp/s/punchng.…

Finally, By Replacing Domestic Debt With External Debt, We Have Now Freed Up More Lending To The Real Sector By Domestic Financial Institutions Which Had Previously Locked Up Money In Public Lending & Crowded Out Real Sector Lending. Access To Capital Will Continue To Improve. 🇳🇬

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