• Wednesday, February 28, 2024
businessday logo

BusinessDay

Nigeria’s total debt rises slightly, hits N88trn

Nigeria’s debt service-to-revenue ratio hits 4-year low

Nigeria’s total public debt rose slightly from N87.38 trillion in June to N87.91 trillion at the end of September 2023, the Debt Management Office (DMO) report has revealed.

The report which was published by the agency on Wednesday, comprised the domestic and external debts of the
Federal Government of Nigeria (FGN), 36 State Governments and the Federal Capital Territory, Abuja.

According to the DMO, the total external debt dropped from $43.16 billion in june to $41.59 billion as at September 30, 2023 and a relatively moderate increase of N1.80 trillion in the domestic debt.

“External Debt decreased due to a redemption of a $500 million Eurobond and the payment of $413.855 million as first principal repayment of the $3.4 bilion loan obtained from the International Monetary Fund in 2020 during Covid-19.

“The servicing of these Debts in addition to other Debts, are clear demenstrations of the FGN’s commitment to honouring its debt obligations. Notwithstanding, Mr President’s initiatives and actions towards revenue generation remain important for Nigeria’s overall fiscal balance,” it stated.

Businessday’ analysis of the report showed that out of the total external debt stock, Nigeria owe International Monetary Fund $2.82 billion. Also Nigeria is indebted to the World Bank through the International Development Association ($14.09billion) and Int’l Bank for Reconstruction and Development ($488.19million).

Others include: African Development Bank ($1.64 billion), Africa Growing Together Fund ($22.98 million), African Development Fund ($973.02 million), Arab Bank for Economic Development in Africa ($5.15 million), European Development Fund ($34.30 million), Islamic Development Bank ($236.11 million) and Int’l Fund For Agricultural Development ($266.64 million).

Also, on Bilateral arrangements, Nigeria is indebted to China (Exim Bank of China) to tune of $4.810 billion, France ($563.17 million), Japan ($55.34 million) India ($23.66 million) and Germany ($134.92 million).