The Debt Management Office has revealed an increase in Nigeria’s public debt, rising by 10.7% to N97.34 trillion in the fourth quarter of 2023, compared to N87.91 trillion recorded in the previous quarter.
This surge in debt levels was primarily driven by new domestic borrowing initiatives by the Federal Government, aimed at partially financing the deficit outlined in the 2024 Appropriation Act, as well as disbursements from both multilateral and bilateral lenders.
The DMO’s disclosure came through a press statement released on Friday, meticulously outlining the composition and reasons behind the uptick in the national debt figure.
According to the statement, “Nigeria’s Public Debt Stock as at December 31, 2023, was N97.34 trillion 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).”
Delving into specifics, the DMO explained that the N97.3 trillion public debt consists of N59.12 trillion in domestic debt and N38.22 trillion in external debt. This composition underscores a strategic preference for domestic borrowing, which accounts for 61% of the total debt, with the remaining 39% sourced externally.
The statement further clarified that a significant portion (63.79%) of Nigeria’s external debt originates from loans from multilateral and bilateral lenders, primarily concessional or semi-concessional, indicating efforts to manage the debt burden effectively.
The DMO reiterated its commitment to employing best practices in public debt management while acknowledging the crucial role of ongoing fiscal efforts to increase revenue, essential for maintaining debt sustainability.
