Public Debt Hits N121tn

Nigeria’s total public debt has reached N121.67tn, increasing by N24.33tn or 24.99 per cent within three months, the Debt Management Office has announced.

This new figure is from a total debt of N97.34tn ($108.23bn) as of December 2023.

The DMO in a statement on Thursday said the public debt comprises both the total domestic and external debts of the Federal Government of Nigeria, the 36 state governments, and the Federal Capital Territory between January and March 2024.

The report read, “Nigeria’s total public debt stood at N121.67tn ($91.46bn) as of March 31, 2024. The comparative figure for December 31, 2023, was N97.34 trillion ($108.23bn). Total Domestic Debt was N65.65tn ($46.29bn) while total external debt was N56.02tn ($42.12bn).”

The office used an official exchange rate of N1,330/$ to convert external debts to naira from N899.39 used to convert the debt in December 2023.

It added that excluding the impact of the naira exchange rate movement in the first quarter of 2024, the domestic debt saw a marked increase to N65.65tn on March 31, 2024, from N59.12tn on December 31, 2023,

The 36 states and FCT also have an external debt of $3.1bn and N4.068tn domestic debt.

The rise is also attributed to a new borrowing undertaken to partly finance the 2024 budget deficit and the securitisation of a portion of the N7.3tn Ways and Means advances at the Central Bank of Nigeria.

The statement added, “Excluding Naira exchange rate movements in Q1 2024, only the Domestic Debt component of Total Public Debt grew from N59.12 trillion on December 31, 2023, to N65.65 trillion on March 31, 2024.

“The increase was from new borrowing to part-finance the 2024 Budget deficit and securitization of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria (CBN).

“Whilst borrowing, as provided in the 2024 Appropriation Act, will continue, we expect improvements in the Government’s Revenue to enhance debt sustainability.”