FG’s fresh borrowings drive up Nigeria’s public debt to N97.3trn

Nigeria’s public debt has increased by 10.7 per cent from N87.87 trillion in Q3’24.to N97.34 trillion as of Dec. 31, 2023, according to data released by the Debt Management Office (DMO) on Friday in Abuja.

The DMO, in an update yesterday said the increase in the debt stock was largely due to new domestic borrowing by the Federal Government, FG, to part finance the deficit in the 2024 Appropriation Act and disbursements by multilateral and bilateral lenders. The Office noted that the N97.3 trillion public debt comprises domestic debt of N59.12 trillion and external debt of N38.22 trillion. The sum of $3.5 billion was used to service external debt during the review period.

DMO said: “Nigeria’s Public Debt Stock as at December 31, 2023 was N97.34trillion or $108.229 Billion. This amount comprises the domestic and external debt stocks of the Federal Government of Nigeria (FGN), the thirty-six (36) States Governments and the Federal Capital Territory (FCT).

“There was an increase of N9.43 trillion over the comparative figure for September, 2023 which was largely due to new domestic borrowing by the FGN to part finance the deficit in the 2024 Appropriation Act and disbursements by multilateral and bilateral lenders.

“At N59.12 trillion, total domestic debt accounted for 61 percent of the total public debt stock while external debt at N38.22 trillion accounted for the balance of 39 percent. Consistent with the debt management strategy, Nigeria’s external debt stock was skewed in favour of loans from multilateral (49.77 percent) and bilateral lenders (14.02 percent) or total of 63.79 percent which are mostly concessional and semi-concessional.

“Whilst the DMO continues to employ best practice in public debt management, the
recent and on-going efforts of the fiscal authorities to shore up revenue will support debt sustainability.”