Nigeria’s total public debt is expected to experience a notable upward trajectory, as it increased by 0.61% quarter-on-quarter (QoQ), rising from N87.38 trillion at the end of Q2, 2023, to N87.91 trillion by September 30, 2023. Analysts at Merristem predict a sustained high level of national debt in the short to medium term, with expectations of increased domestic borrowing by the government. The report also highlighted a slight increase in Nigeria’s unemployment rate to 4.20% in Q2, 2023, and provided insights into corporate developments, including AIICO Insurance Plc acquiring a 5.00% stake in Infrastructure Credit Guarantee Company Limited.
Key Points:
- Nigeria’s total public debt increased by 0.61% QoQ, reaching N87.91 trillion by September 30, 2023, compared to N87.38 trillion at the end of Q2, 2023.
- The domestic debt stock of the country increased by N1.80 trillion, reaching N50.20 trillion in Q3, 2023, indicating a sustained high level of national debt in the short to medium term.
- External debt decreased due to the redemption of a $500 million Eurobond and the payment of $413.86 million as the first principal repayment of a $4.30 billion loan obtained from the International Monetary Fund (IMF) in 2020.
- Analysts expect Nigeria’s debt level to remain elevated in the short to mid-term, with anticipations of additional domestic borrowings by the government.
- The National Bureau of Statistics (NBS) reported a slight increase in Nigeria’s unemployment rate to 4.20% in Q2, 2023, with youth unemployment (15 to 24 years) witnessing a 30 basis points uptick to 7.20%.
- In Q2, 2023, the employment-to-population rate was reported at 77.10%, while the proportion of the employed population classified as underemployed decreased from 12.20% in Q1 to 11.80%.
- AIICO Insurance Plc acquired a 5.00% stake in Infrastructure Credit Guarantee Company Limited, becoming the second domestic institutional investor to invest in the institution.
- The investment by AIICO Insurance Plc aligns with Infrastructure Credit Guarantee Company Limited’s goal to enhance private sector participation in its ownership structure.
Source: This Day Live