• Wednesday, February 21, 2024
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Nigeria’s debt rises to N87.91trn, external portion drops

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Nigeria’s total public debt rose slightly from N87.38 trillion in June to N87.91 trillion at the end of September, data released by the Debt Management Office (DMO) on Wednesday shows.

The N87.91 trillion comprises the domestic and external debts of the Federal Government of Nigeria (FGN), 36 state governments and the Federal Capital Territory.

The country’s external debt decreased for the first time in a year, according to an analysis of data from the DMO.

Te total external debt dropped from $43.16 billion in June to $41.59 billion as of September while the domestic debt increased by N1.80 trillion.

It said: “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 billion loan obtained from the International Monetary Fund (IMF) in 2020 during Covid-19.

“The servicing of these debts, in addition to other debts, are clear demonstrations 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.”

A breakdown of the external debt shows that the country owed the IMF $2.82 billion as of September; the World Bank’s International Development Association, $14.09 billion, and the International Bank for Reconstruction and Development, $488.19 million.

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.

The country owed the Exim Bank of China $4.810 billion as of September; France, $563.17 million; Japan, $55.34 million; India, $23.66 million; and Germany, $134.92 million.

On the commercial side, Eurobond amounted to $15.11 billion and syndicate loans were $300 million.

The domestic debt stock, which stood at N50.19 trillion as at September, comprises FGN Bonds worth N43.17 trillion; Nigerian Treasury Bills, N4.7 trillion, Nigerian Treasury Bonds, N25.98 billion; FGN Savings Bond, N33.92 billion; FGN Sukuk, N742 billion; Green Bond, N15 billion; and promissory notes, N1.47 trillion.

The DMO said the total domestic debt service from July to September was N1.79 trillion.