Nigeria's Public Debt In 10.7% Surge ( N97.34 Trillion)

 The Debt Management Office (DMO) has revealed a significant increase in the public debt of the country, rising by 10.7% to N97.34 trillion in the fourth quarter of 2023, up from N87.91 trillion in the previous quarter.

This rise in debt levels was mainly due to new domestic borrowing measures implemented by the Federal Government, aimed at partially funding the deficit specified in the 2024 Appropriation Act, as well as funds received from both multilateral and bilateral lenders.

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The DMO's announcement was made through a press release issued on Friday, detailing the composition and reasons behind the rise in the national debt amount.

The statement read:

“Nigeria’s Public Debt Stock as at December 31, 2023 was N97.34trillion or $108.229 billion. This amount comprises the domestic and external debt stocks of the Federal Government of Nigeria (FGN), the thirty-six (36) States Governments and the Federal Capital Territory (FCT).

“There was an increase of N9.43 trillion over the comparative figure for September, 2023 which was largely due to new domestic borrowing by the FGN to part finance the deficit in the 2024 Appropriation Act and disbursements by multilateral and bilateral lenders.”

The breakdown provided by the DMO reveals that out of the N97.3 trillion public debt, N59.12 trillion constitutes domestic debt, while N38.22 trillion is external debt.

This breakdown underscores a strategic preference for domestic borrowing, which accounts for 61% of the total debt, leaving 39% sourced from external channels.

Moreover, the DMO highlighted that a substantial portion (63.79%) of Nigeria's external debt originates from multilateral and bilateral lenders. These loans are predominantly concessional or semi-concessional, reflecting efforts to prudently handle the debt load.

The statement added:

“At N59.12 trillion, total domestic debt accounted for 61 percent of the total public debt stock while external debt at N38.22 trillion accounted for the balance of 39 percent.

“Consistent with the debt management strategy, Nigeria’s external debt stock was skewed in favour of loans from multilateral (49.77 percent) and bilateral lenders (14.02 percent) or total of 63.79 percent which are mostly concessional and semi-concessional.”