After the third quarter of 2023, Nigeria’s national debt stood at N87.91 trillion, up slightly from N87.38 trillion at the end of the second quarter.
This was revealed in the Debt Management Office’s (DMO) third-quarter 2023 public debt report, released yesterday. Additionally, the agency reported that during that time, the overall stock of external debt fell by $1.57 billion, from $43.16 billion to $41.59 billion.
However, more than the decrease was needed to offset the increase in the domestic portion of the sovereign obligations.
According to DMO’s announcement, the $500 million Eurobond redemption for Nigeria and the $413.859 million first principal payment from the $3.4 billion loan from the International Monetary Fund (IMF) that was taken out during the COVID-19 period are to blame for the fall.
“External debt decreased due to the redemption of $500 million in Eurobonds and the payment of $413.859 as the first principal repayment of the $4.3 billion obtained from the International Monetary Fund (IMF) in 2020 during COVID-19,” according to a statement released by DMO.
However, it did note that as of September 30, 2023, Nigeria’s total public debt increased slightly from N87.38 trillion at the end of the second quarter to N87.91 trillion ($114.35 billion). This was due to an increase in the nation’s domestic debt stock, which increased by N1.8 trillion to N50.196 trillion over the three months.
According to DMO, “the sum represents the internal and external debts of the Federal Capital Territory, the 36 state governments, and the Federal Government of Nigeria.”
“These debts, along with other debts, are clear demonstrations of the FGN’s commitment to honoring its debt obligations,” the statement continued.
The federal government’s recent round of borrowings, which have caused an enormous increase in the country’s debt profile, has continued to draw criticism from Nigerians.
Even though the administration has consistently maintained that the nation’s debt-to-GDP ratio is within acceptable bounds, there is still a debt crisis. It acknowledges that it faces a revenue difficulty, nevertheless.
The federal government proposes to borrow N7.83 trillion in the 2024 budget proposal that the National Assembly is considering. This is one of the steps taken to close the N9.18 trillion budget deficit. The administration declared that it wanted to increase revenue and lessen its reliance on debt.
