Nigeria’s Debt Management Office (DMO) announced that the country’s total public debt rose significantly to 121.67 trillion naira (about 91.46 billion USD) as of March 31, 2024.
According to a statement issued by the DMO, RIts figure includes the combined domestic and external debts of the Federal Government of Nigeria (FGN), the 36 state governments, and the Federal Capital Territory (FCT).
In comparison, the total public debt as of December 31, 2023, was 97.34 trillion naira (about $108.23 billion). This represents a significant increase of N24.33 trillion or 24.99% over the three-month period.
This increase was mainly due to the depreciation of the naira, as total dollar debt decreased by $16.77 billion or 18.34%.
Domestic debt constitutes 53.96% of the total debt
The distribution of total debt as of March 31, 2024 shows that domestic debt The external debt component amounted to 65.65 trillion naira (about 46.29 billion dollars), while the external debt component amounted to 56.02 trillion naira (about 42.12 billion dollars). This means that 53.96% of the total debt is owed to local creditors.
The statement from the Debt Management Office also noted that excluding the impact of naira exchange rate movements in the first quarter of 2024, domestic debt saw a notable increase from N59.12 trillion at the end of December 2023 by N6.53 trillion or 11.05%.
The rise was attributed to new borrowing undertaken to finance part of the 2024 budget deficit and securitization of part of the N7.3 trillion Ways and Means advances at the Central Bank of Nigeria (CBN).
The statement issued by the DMO stated the following: “Nigeria’s total public debt, which includes the total domestic and external debt of the Federal Government of Nigeria (FGN), the thirty-six (36) state governments, and the Federal Capital Territory (FCT), amounted to 121.67 trillion naira (US$91.46 billion) as of From March 31, 2024. The comparative figure as of December 31, 2023 was 97.34 trillion naira (US$108.23 billion). Total domestic debt was 65.65 trillion naira (US$46.29 billion) while total external debt was 56.02 trillion naira (US$42.12 billion). .
“Excluding naira exchange rate movements in the first quarter of 2024, only the domestic debt component of total public debt increased from N59.12 trillion as at 31 December 2023 to N65.65 trillion as at 31 March 2024. The increase was from new borrowing to a portion of the debt.” – Financing the 2024 budget deficit and securitizing part of Ways and Means advances amounting to 7.3 trillion naira at the Central Bank of Nigeria.
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The Director-General of the DMO, Patience Oniha, had earlier stated that the Federal Govt N4.5 trillion has been raised out of the N6 trillion target In the 2024 budget.
She noted that local securities remain a major source of federal government spending.