Nigeria’s Public Debt Hits ₦87.91 Trillion

Nigeria’s total public debt in the third quarter of 2023 recorded a slight uptick, rising by 0.61 per cent to reach ₦87.91 trillion, according to recent data released by the Debt Management Office (DMO) on Wednesday.

The breakdown of the debt shows that the total external debt amounted to ₦31.98 trillion, while domestic debt stood at ₦55.93 trillion during the reported period.

The DMO clarified, “At ₦87.91tn, the total public debt stock represents a marginal increase of 0.61 per cent when compared to the June 30, 2023 figure of ₦87.38tn. This trend is explained by the decrease in external debt from $43.16bn as of June 30, 2023, to $41.59bn as of September 30, 2023, and a relatively moderate increase of ₦1.8tn in the domestic debt.”

The decrease in external debt is attributed to the redemption of a $500 million Eurobond and the payment of $413.859 million as the first principal payment of the $3.4 billion loan obtained from the International Monetary Fund in 2020 during the Covid-19 pandemic.

The DMO emphasized that the servicing of these debts underscores the Federal Government’s commitment to honoring its debt obligations. This data highlights the ongoing financial challenges and the need for prudent fiscal management to ensure economic stability.