Nigeria’s debt stock rises to over US$103 billion

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Nigeria’s total public debt stock has risen to 103.31 billion U.S. dollars in the second quarter (Q2) of this year, with over 3 billion dollars above the figure reported in Q1, the country’s Debt Management Office (DMO) said in a quarterly report.”

In March, the DMO said in its Q1 report that the total public debt stock of Africa’s largest economy stood at 100.07 billion dollars. The quarterly report by DMO covers both the domestic and external debt stocks by the Nigerian government, including all 36 states and the Federal Capital Territory (FCT).

The latest report reaching Xinhua on Tuesday indicated that foreign debts remained at 39.96 billion dollars, the same level as Q1, while the local debt rose to 63.24 billion dollars from 60.1 billion dollars reported in Q1.

Over 58 percent of Nigeria’s external debts were concessional and semi-concessional loans both from multilateral and bilateral lenders, according to DMO.

“They were obtained from multilateral lenders such as the World Bank, International Monetary Fund, African Export-Import Bank, and African Development Bank, and bilateral lenders including Germany, China, Japan, India, and France,” the debt management agency said.

The country’s local debt stock rose due to new borrowings by the federal government to part-finance the deficit in the 2022 appropriation act, as well as new borrowings by state governments and the FCT, the agency said.

The DMO said standing at 23.06 percent, the total public debt-to-GDP (gross domestic product) ratio remained within limits, reducing from 23.27 percent in Q1. The government’s self-imposed limit stands at 40 percent.

The debt office noted that the debt service-to-revenue ratio was still high, although the Nigerian government has vowed to be steadfast in increasing revenue so as to reduce the amount that went into debt servicing. Enditem

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