The Debt Management Office (DMO) report reveals a slight increase in Nigeria’s total public debt, reaching N87.91 trillion at the end of September 2023 compared to N87.38 trillion in June. This comprehensive report includes the combined domestic and external debts of the Federal Government of Nigeria, 36 State Governments, and the Federal Capital Territory, Abuja.
The DMO discloses that the external debt decreased from $43.16 billion in June to $41.59 billion by September 30, 2023, primarily due to the redemption of a $500 million Eurobond and the repayment of $413.855 million as the first principal repayment of the $3.4 billion loan acquired from the International Monetary Fund in 2020 during the COVID-19 pandemic.
The analysis of the report reveals that Nigeria’s external debt stock includes amounts owed to various entities. Notable among them are the International Monetary Fund ($2.82 billion), World Bank through the International Development Association ($14.09 billion), Int’l Bank for Reconstruction and Development ($488.19 million), African Development Bank ($1.64 billion), and others.
On bilateral arrangements, Nigeria has indebtedness to countries such as China (Exim Bank of China – $4.810 billion), France ($563.17 million), Japan ($55.34 million), India ($23.66 million), and Germany ($134.92 million).
The report emphasizes that servicing these debts, along with others, demonstrates the Federal Government’s commitment to honoring its debt obligations. The article also highlights the importance of President Buhari’s initiatives and actions toward revenue generation for Nigeria’s overall fiscal balance.
Source: Business Day