LAGOS, Nigeria (VOICE OF NAIJA)-A report by the Debt Management Office (DMO), has shown that Nigeria’s public debt stock skyrocketed to a staggering N97.341 trillion ($108.229 billion) as of December 31, 2023.
This encompassing figure encapsulates both domestic and external debt holdings of various governmental entities, including the Federal Government, the 36 state governments, and the Federal Capital Territory.
The latest data, disseminated by the DMO in Abuja on Friday, underscores a substantial uptick of N9.43 trillion compared to the preceding reporting period ending September 30, 2023.
This surge primarily stems from fresh domestic borrowings by the Federal Government, directed towards offsetting the deficit outlined in the 2024 budget, alongside disbursements from multilateral and bilateral lenders.
Providing a breakdown, the DMO highlighted that total domestic debt stood at N59.12 trillion, constituting 61 percent of the overall public debt stock. Concurrently, external debt amounted to N38.22 trillion, accounting for the remaining 39 percent.
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“The composition of Nigeria’s public debt reflects a balance between domestic and external obligations,” remarked a spokesperson from the Debt Management Office. “At N59.12 trillion, total domestic debt accounted for 61 percent of the total public debt stock, while external debt at N38.22 trillion accounted for the balance of 39 percent,” the spokesperson stated.
Furthermore, the composition of Nigeria’s external debt portfolio sheds light on a notable reliance on loans sourced from multilateral and bilateral channels, a strategic move in line with the country’s debt management framework. Specifically, multilateral loans command a share of 49.77 percent, with bilateral loans comprising 16.02 percent, collectively constituting 63.79 percent. It’s worth noting that a significant proportion of these loans falls within the concessional or semi-concessional category, offering favourable terms for repayment.
In response to the burgeoning debt profile, the DMO reaffirmed its unwavering commitment to upholding best practices in public debt management. Additionally, it underscored the imperative of ongoing initiatives by governmental authorities to bolster revenue generation, a pivotal step towards ensuring the long-term sustainability of Nigeria’s debt trajectory.
This latest revelation regarding Nigeria’s public debt underscores the pressing need for prudent fiscal management and proactive measures aimed at enhancing revenue streams, thereby mitigating potential risks associated with mounting debt obligations.