Nigeria’s debt to reach N121tr by Q1 2024 – DMO

Nigeria’s total public debt has increased by N24 trillion in the first three months of this year to reach N121.67 trillion.

The Debt Management Office (DMO) revealed this in new data released on Thursday.

This figure is up 24.99 percent from N97.34 trillion in December 2023.

Nigeria’s public debt profile consists of the domestic and external debt stocks of federal and subnational governments — the 36 states and the federal capital territory (FCT).

According to the DMO, the debt was driven by new domestic borrowing by the federal government to partially fund the 2024 budget deficit as well as disbursements by multilateral and bilateral lenders.

“Total domestic debt is N65.65 trillion (USD46.29 billion) while total external debt is N56.02 trillion (USD42.12 billion).

“Excluding movements in the naira exchange rate in Q1 2024, only the domestic debt component of total public debt grew from N59.12 trillion on 31 December 2023, to N65.65 trillion on 31 March 2024.

“The increase comes from new borrowing to partially finance the 2024 Budget deficit and securitization of part of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria.

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“While borrowing, as provided in the 2024 Appropriation Act, will continue, we expect an increase in government revenues to improve debt sustainability,” the DMO said.

Minister of Finance and Coordinating Minister for the Economy, Wale Edun, said on June 13 that the World Bank had approved two large “financial support packages” worth $2.25 billion.

In May, the Bureau of Public Enterprises (BPE) said the federal government had secured a $500 million World Bank loan to improve electricity distribution in the country.

Previously, the federal government received $750 million from the World Bank for humanitarian and social reforms and $1.5 billion for an economic stabilization plan.

By: Babajide Okeowo

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