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Nigeria’s Public Debt Increases by 2.98% to N42tn.
Nigeria’s public debt increased by 2.98% to N42tn.
Nigeria’s overall public debt stock, which was N41.60 trillion ($100.07 billion) in March, increased to N42.84 trillion ($103.31 billion) by June, according to the Debt Management Office (DMO).
NewsReport that the overall debt is made up of the domestic and foreign debt stocks of the Federal Government of Nigeria (FGN), the 36 State Governments, and the Federal Capital Territory, according to a statement that was received from the DMO website on Tuesday (FCT).
It said that while the foreign component of the debt remained at the same level of N16.61 trillion (39.96 billion dollars), the local component increased to N26.23 trillion (63.24 billion dollars).
The News Agency of Nigeria (NAN) reports that the local component of the country’s borrowings was N24.98 trillion (60.1 billion dollars) as of March 30.
The DMO said a larger percentage of the external debts were concessional and semi-concessional loans.
“Over 58 percent of the external debt stocks are concessional and semi-concessional loans.
“They were obtained from multilateral lenders such as the World Bank, International Monetary Fund, Afrexim and African Development Bank, and bilateral lenders including Germany, China, Japan, India, and France.
“The total domestic debt stock increased from N24.98 trillion (60.1billion dollars) in March to N26.23 trillion (63.24 billion dollars) in June.
“This is due to new borrowings by the FGN to part-finance the deficit in the 2022 Appropriation (Repeal and Enactment) Act, as well as new borrowings by state governments and the FCT,” the DMO said.
It said that the total public Debt-to-GDP ratio remained within limits, at 23.06 percent, while Debt-Service-to-Revenue was still high.
“The Debt-to-GDP as of June 30 was 23.06 percent compared to the ratio of 23.27 as of March 30. It remains within Nigeria’s self-imposed limit of 40 percent.
“While the Federal Government continues to implement revenue-generating initiatives in the non-oil sector and block leakages in the oil sector, Debt Service-to-Revenue ratio remains high,” it said.
Meanwhile, the DMO is set to take its FGN Securities Awareness Programme to Yola on Wednesday and Umuahia on September 29.
According to Patience Oniha, DMO’s Director-General, the program is designed to sensitize Nigerians on the huge investment benefits in FGN securities, thereby boosting financial inclusion. (NAN)
