The overall external debt stock of Nigeria fell by $1.57bn in the third quarter of 2023, from $43.16 billion to $41.59 billion as of September 30, 2023.
The Times reported that this is according to the Debt Management Office’s third-quarter public debt report.
The cause for the reduction, according to the statement, is the redemption of Nigeria’s $500 million Eurobonds and the first principle payment of $413.859 million on the IMF’s $3.4 billion loan secured during the 2020 covid-19 period.
It was mentioned, “External debt was reduced as a result of the redemption of a USD500 million Eurobond and the payment of USD 413.859 as the first principal repayment of the USD4.3 billion obtained from the International Monetary Fund in 2020 during COVID-19″
Nigeria’s overall public debt climbed marginally from N87.38 trillion at the end of the second quarter to N87.91 trillion ($114.35 billion) as of September 30, 2023, according to the statement. This represents a 0.61% increase in three months.
According to the DMO, the country’s domestic debt stock climbed by N1.80 trillion to N50.196 trillion at the end of the third quarter.
The securitization of the CBN’s N22.712 trillion Ways and Means advances brought Nigeria’s overall public debt to N87.38 trillion in the second quarter.
A statement from the Director-General of the DMO declared that the N7.04 trillion domestic borrowing target has been met.
The federal government wants to borrow N7.83 trillion as part of efforts to bridge the N9.18 trillion budget shortfall in the 2024 budget proposal before the National Assembly. The federal government, on the other hand, is aiming to lessen its reliance on debt and increase revenue.
President Tinubu previously established a committee on fiscal policy and tax changes to investigate tax legislation and propose improvements to raise revenue and eradicate leakages.
To lessen the federal government’s reliance on debt, the Federal Inland Revenue Service has set a target of 18% revenue to GDP for the next three years.
