Nigerian Public Debt Hits N42 trillion
According to the Debt Management Office (DMO), the overall public debt stock in Nigeria, which was N41.60 trillion (100.07 billion dollars) in March has increased to N42.84 trillion (103.31 billion dollars) by June.
In the statement received from the DMO website on Tuesday, The Federal Government of Nigeria (FGN), the 36 State Governments, and the Federal Capital Territory’s total debt represents both domestic and foreign debt stocks.
But it claimed that while the local portion of the debt became N26.23 trillion, the international portion stayed at N16.61 trillion (or 39.96 billion dollars) (63.24 billion dollars).
According to the News Agency of Nigeria (NAN), as of March 30, the local portion of the nation’s borrowings was N24,98 trillion (60.1 billion dollars).
According to the DMO, a greater portion of the external indebtedness consisted of concessional and semi-concessional loans.
“Over 58 per cent of the external debt stock 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.
According to the report, the total public Debt-To-GDP ratio was 23.06 percent, which was still within acceptable bounds, but Debt- Service – To- Revenue was still high.
It also stated that the federal government was dedicated to raising revenue in order to lower the amount used to service debt.
“The Debt-to-GDP as at June 30, was 23.06 per cent compared to the ratio of 23.27 as at March 30. It remains within Nigeria’s self-imposed limit of 40 per cent.
“While the Federal Government continues to implement revenue-generating initiatives in the non-oil sector and block leakages in the oil sector, the Debt Service-to-Revenue ratio remains high,” it said.
The FGN Securities Awareness Programme will be presented by the DMO in Yola on Wednesday and Umuahia on September 29.
According to Patience Oniha, DMO’s Director-General, the campaign is intended to educate Nigerians on the significant investment benefits of FGN securities, hence promoting financial inclusion.