• Friday, September 29, 2023
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Nigeria’s debt rises to N32.2trn as domestic borrowing gulps 62%

Finding a Way Out of Nigeria’s High Debt Costs


Nigeria’s total debt stock rose to N32.2 trillion at the end of September 2020, according to official data from the Debt Management Office.

That’s 3.9 percent or N1.2 trillion higher than the N31 trillion owed by Africa’s biggest economy as at June 2020, the data show.

Domestic borrowings stood at N20 trillion, about 62.18 percent of the total debt stock. This consisted of N15.85 trillion borrowed by the Federal Government and N4.2 trillion owed by the 36 states of the federation plus the FCT.

About 73.53 percent or N11.65 trillion of the Federal Government domestic debt was from FGN bonds; N2.72 trillion or 17.17 percent was in Treasury bills instrument; while Nigerian Treasury Bonds, FGN savings bond, Sukuk, Green Bond and Promissory Notes instruments were used to borrow N100.99 billion, N12.56 billion, N362.56 billion, N25.69 billion and N971.87 billion, respectively.

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On the other hand, Nigeria’s external debt was put at $31.99 billion (N12.2 trillion), owed by the Federal Government alone.

Further breakdown of this shows that a total of $3.45 billion is owed to the International Monetary Fund (IMF), World Bank ($10.74 billion), Africa Development Bank Group ($2.54 billion), bilateral loans from China, France, Japan, Germany, and India ($4.08 billion), Eurobonds ($10.87 billion), and Diaspora Bond $300 million.