June 20, (THEWILL) – Nigeria’s total public debt has risen to N121.67 trillion or about $91.46 billion, the Debt Management Office (DMO), has reported.
According to the DMO, total Public Debt rose from N97.34 trillion in December 2023, to N121.67 trillion in the first quarter ended March 31, 2024.
The debts comprise the total domestic and external debts of the Federal Government of Nigeria, the 36 state governments and the Federal Capital Territory (FCT).
While domestic debt stands at N65.65 trillion or $46.29 billion, external debt sits at N56.02 trillion or $42.12 billion.
The report noted that the increase in total public debt was primarily driven by domestic borrowing. When adjusted for fluctuations in the naira exchange rate during the first quarter of 2024, only the domestic debt component exhibited growth. This figure has risen from N59.12 trillion at the end of 2023, to N65.65 trillion by March 31, 2024.
The DMO attributed the rise in domestic debt to two key factors: the Nigerian government resorted to borrowing to partially finance the shortfall between projected revenue and planned expenditure outlined in the 2024 Appropriation Act and a portion of the N7.3 trillion Ways and Means Advances extended by the Central Bank of Nigeria (CBN), to the government, has been converted into tradable securities. This process, known as securitisation, essentially adds to the domestic debt burden
About the Author
