Capital

Nigeria’s Debt Rises By N2.3trillion In 3 Months-DMO

BY NKECHI NAECHE-ESEZOBOR—he Debt Management Office on Wednesday said Nigeria’s total debt burden stands at 31trn as at June 30, 2020, representing N2.38trn increase in three months.

The DMO added that the total public debt stock includes the debt stock of the Federal Government, the 36 states and the Federal Capital Territory.

Just as the country’s public debt stock, the DMO also released reports on Nigeria’s Actual External Debt Service Payments in the Second Quarter, 2020, as well as Nigeria’s External Debt Stock as of June 30, 2020.

On the nation’s public debt stock as of June 30, 2020, the DMO said, “The data shows that in naira terms, the total public debt stock which comprises the debt stock of the Federal Government, the 36 state governments and the FCT stood at N31.009trn or $85.897bn.

“The corresponding figures for March 31, 2020, were N28.628trn or $79.303bn.”

The debt office explained that the increase in the debt stock by N2.381trn or $6.593bn was accounted for by the $3.36bn budget support loan from the International Monetary Fund, new domestic borrowing to finance the revised 2020 Appropriation Act.

It said this includes the issuance of the N162.557bn Sukuk, and promissory notes issued to settle claims of exporters.

“The DMO expects the public debt stock to grow as the balance of the new domestic borrowing is raised and expected disbursements are made by the World Bank, African Development Bank and the Islamic Development Bank which were arranged to finance the 2020 Budget.

It stated that additional promissory notes were expected to be issued in the course of the year.

This, it said, and new borrowings by state governments, were also expected to increase the public debt stock.

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