Nigeria’s total public debt stock rose from N28.628 trillion ($79.303 billion) as at March 31, 2020 to N31.009 trillion ($85.897 Billion) by June 30, 2020, according to latest statistics released by the Debt Management Office (DMO).
The DMO attributed the N2.381 trillion ($6.593 billion) rise in the debt stock to the $3.36 billion budget support loan from the International Monetary Fund (IMF), new domestic borrowing to finance the Revised 2020 Appropriation Act (including the issuance of the N162.557 billion Sukuk), as well as Promissory Notes issued to settle exporters’ claims.
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BUSINESS & ECONOMY
BREAKING: Nigeria’s debt rises by N2.3trn, hits N31trn – DMO
Published September 9, 2020
Okechukwu Nnodim, Abuja
The Debt Management Office on Wednesday released Nigeria’s total public debt stock as of June 30, 2020, and put the country’s entire debt at N31trn, indicating an increase of N2.38trn within a space of three months.
Nigeria’s total public debt stock includes the debt stock of the Federal Government, the 36 states, and the Federal Capital Territory.
The DMO also released reports on Nigeria’s Actual External Debt Service Payments in Second Quarter, 2020, as well as Nigeria’s External Debt Stock as of June 30, 2020.
“The data shows that in naira terms, the total public debt stock which comprises the debt stock of the Federal Government, the 36 state governments and the FCT stood at N31.009trn or $85.897bn,” the DMO said.
“The corresponding figures for March 31, 2020, were N28.628trn or $79.303bn.”
The DMO explained that the increase in the debt stock by N2.381trn or $6.593bn was accounted for by the $3.36bn budget support loan from the International Monetary Fund, new domestic borrowing to finance the revised 2020 Appropriation Act.
According the debt office, this includes the issuance of the N162.557bn Sukuk, and promissory notes issued to settle claims of exporters.
“The DMO expects the public debt stock to grow as the balance of the new domestic borrowing is raised and expected disbursements are made by the World Bank, African Development Bank and the Islamic Development Bank which were arranged to finance the 2020 Budget,” said.
“Recall that the 2020 Appropriation Act had to be revised in the face of the adverse and severe impact of COVID-19 on government’s revenues and increased expenditure needs on health and economic stimulus, among others.”
It stated that additional promissory notes were expected to be issued in the course of the year.
This, it said, and new borrowings by state governments, were also expected to increase the public debt stock.