The Debt Management Office (DMO) says Nigeria’s total public debt has reached N121.67 trillion within three months.
This figure represents an increase of N24.33 trillion or
24.99 percent from the N97.34 trillion as of December 2023.
Nigeria’s public debt profile consists of domestic and
external debt stocks of the federal and subnational governments — the 36 states
and the federal capital territory (FCT).
According to the DMO, the increase was primarily due to new
domestic borrowing by the federal government to partly fund the deficit in the
2024 budget as well as disbursements by multilateral and bilateral lenders.
“Total domestic debt
was N65.65 trillion (USD46.29 billion) while total external debt was N56.02
trillion (USD42.12 billion).
“Excluding naira exchange rate movements in Q1 2024, only
the domestic debt component of total public debt grew from N59.12 trillion on
December 31, 2023, to N65.65 trillion on March 31, 2024.
“The increase was from new borrowing to part-finance the
2024 Budget deficit and securitization of a portion of the N7.3 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.”
On June 13, Wale Edun, the minister of finance and
coordinating minister of the economy, announced the approval of two major
“financial support packages” by the World Bank — valued at $2.25 billion.
In May, the Bureau of Public Enterprises (BPE) said the federal
government has secured a $500m World Bank loan to boost electricity
distribution in the country.
Prior to this, the federal government had received $750
million from the World Bank for humanitarian and social reforms and $1.5
billion for its economic stabilisation plan.
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