NIGERIA’S DEBT RISES

Nigeria’s Debt Management Office (DMO) announced on Thursday that the country’s total public debt is at ₦121.67 trillion ($91.46 billion).

The country’s external and domestic debt was estimated by the DMO to be about ₦121.67 trillion ($91.46 billion) as of March 31, 2024. In just three months, Nigeria’s debt increased from ₦97.34 trillion ($108.23 billion) in December 2023 to ₦121.67 trillion ($91.46 billion), a gain of ₦24.33 trillion.

The total amount of Nigeria’s national debt, according to the Debt Management Office (DMO), is ₦121.67 trillion ($91.46 billion).

This information was released on Thursday. As of March 31, 2024, the DMO estimated that the nation’s debt, both domestic and foreign, was approximately ₦121.67 trillion ($91.46 billion).

Nigeria’s debt rose by ₦24.33 trillion in just three months, from ₦97.34 trillion ($108.23 billion) in December 2023 to ₦121.67 trillion ($91.46
billion).

The debt represents external and domestic borrowings by the Federal Government and the 36 state governments and the Federal Capital Territory (FCT).

While total domestic debt was put at ₦65.65trn ($46.29bn), total external debt was ₦56.02trn ($42.12bn).

The DMO stated that total public debt grew from ₦59.12trn last December to ₦65.65trn as of March 2024.

The total debt was reduced in dollar terms by $16.77bn or 18.34 per cent, as the increase was driven majorly by naira depreciation. The office used an official exchange rate of ₦1,330/$ to convert external debts to naira from ₦899.39 used to convert the debt in December 2023.

It added that excluding the impact of the naira exchange rate movement in the first quarter of 2024, the domestic debt saw a marked increase to ₦65.65tn on March 31, 2024, from ₦59.12tn on December 31, 202

The rise was also attributed to a new borrowing undertaken to partly finance the 2024 budget deficit, and the securitisation of a portion of the ₦7.3tn Ways and Means advances at the Central Bank of Nigeria.

It noted that “the increase was from new borrowing to part-finance the 2024 Budget deficit and securitization of a portion of the ₦7.3 trillion Ways and Means Advances at the Central Bank of Nigeria”.

“Whilst borrowing, as provided in the 2024 Appropriation Act, will continue, we expect improvements in the Government’s Revenue to enhance debt sustainability.”