Nigeria’s Total Debts Rise 0.61% to N87.91trn in Q3 of 2023

By Aduragbemi Omiyale

The Debt Management Office (DMO) on Wednesday disclosed that the total public debt stock of Nigeria increased by 0.61 per cent to N87.91 trillion in the third quarter of 2023 from N87.38 trillion in the second quarter of the year.

In a statement signed by the management of the agency, it was revealed that the debts comprise domestic and external borrowings by the federal government, the 36 state governments and the Federal Capital Territory (FCT).

The DMO noted that the external component of the debts decreased in the period under consideration because of the redemption of $500 million Eurobond, emphasising that this shows the ability of the government to repay the loans at maturity.

There had been fears that the country could run into trouble over the repayment of the loans taken from different sources, especially by the immediate past administration of Mr Muhammadu Buhari.

“The total public debt as of September 30, 2023, was N87.91 trillion or $114.38 billion. The amount represents the domestic and external debts of the Federal Government of Nigeria (FGN), the 36 state governments and the Federal Capital Territory (FCT).

“At N87.91 trillion, the total public debt stock represents a marginal increase of 0.61 per cent when compared with the June 30, 2023, figure of N87.38 trillion.

“This trend is explained by the decrease in external debt from $43.16 billion as of June 30, 2023, to $41.59 billion as of September 30, 2023, and a relatively moderate increase of N1.80 trillion in the domestic debt.

“External debt decreased due to the redemption of a $500 million Eurobond and the payment of $413.859 million as the first principal repayment of the $3.4 billion loan obtained from the International Monetary Fund (IMF) in 2020 during COVID-19.

“The servicing of these debts in addition to other debts are clear demonstrations of the FGN’s commitment to honouring its debt obligations.

“Notwithstanding, Mr President’s initiatives and actions towards revenue generation remain important for Nigeria’s overall fiscal balance,” the statement from the debt office today said.