Nigeria’s Debt Rises to N87.4trn, External Debt 38%
Following a decision to securitise overdraft obtained from the Central Bank, Nigeria’s total public debt has increased strongly to about N87.4 trillion. In its latest update, the Debt Management Office (DMO) puts Nigeria’s total public debt at N87.38 trillion at the end of the second quarter of 2023.
This figure represents an increase of 75.29 per cent which is exactly N37.53 trillion increase when compared to N49.85 trillion reported in the first quarter of the fiscal year 2023. Foreign debt portion continues to rise in line with fluctuation in exchange rate.
Nigeria’s debt agency revealed that total public debt now includes the N22.71 trillion Ways and Means Advances of the apex bank as lender of last resort to the Federal Government. Domesticated borrowings account for the largest chunk of the nation’s total obligation.
The DMO stated, “Nigeria’s total public debt stock as of June 30, 2023, was N87.38 trillion ($113.42 billion). It comprises the total domestic and external debts of the Federal Government of Nigeria, the thirty-six states, and the Federal Capital Territory.
“The major addition to the Public Debt Stock was the inclusion of the N22.712 trillion securitized FGN’s Ways and Means Advances.”
At the end of June, external debt accounted for 38.05% of Nigeria’s total public debt. It was noted that the Federal Government owes 34.22% of foreign debt, while 36 states and FCT borrowings accounted for 3.81%. Total domestic borrowings is 61.95% of Nigeria’s debt exposures, of which FG debts account for 55.29% and States 6.66%
Foreign currency loans were converted at the Central Bank of Nigeria (CBN) Official Exchange Rate of US$1 to N770.38 as of June 30, 2023, DMO said. #Nigeria’s Debt Rises to N87.4trn, External Debt 38%