Nigeria’s Debt Soars by N24.33tn in Quarter.
Nigeria’s total debt stock surged by N24.33 trillion in the first quarter of 2023, reaching N121.67 trillion from N97.34 trillion in December 2023, according to data from the Debt Management Office (DMO).
The increase primarily stemmed from new borrowing to partially finance the 2024 Budget deficit and the securitization of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria. The total public debt comprises both domestic and external debts of the Federal Government, state governments, and the Federal Capital Territory.
Domestically, the debt profile saw significant growth: FGN bonds increased by N4.16 trillion to N48.42 trillion, treasury bills grew by N3.92 trillion to N10.44 trillion, FGN savings bonds rose by N4.69 billion to N43.88 billion, and promissory notes increased by N240.22 billion to N1.57 trillion.
Externally, while the dollar component of Nigeria’s external loans decreased slightly to $42.12 billion, the naira equivalent rose to N56.03 trillion due to exchange rate movements.
Looking ahead, the DMO expects continued borrowing as outlined in the 2024 Appropriation Act, emphasizing the importance of revenue improvements to enhance debt sustainability. As of the latest update, the Federal Government has raised N4.5 trillion out of its N6 trillion target for the 2024 budget, with plans to finance a deficit of N9.18 trillion through new borrowings totaling N7.83 trillion.
This debt update underscores Nigeria’s ongoing fiscal challenges and the critical need for sustainable financial management amid rising debt levels.
