Nigeria’s external debt falls to $41.59bn
…as DMO redeems $500m eurobond
By Sodiq Adelakun
In the latest financial update from the Debt Management Office (DMO), Nigeria’s total public debt has been reported to have experienced a slight uptick, reaching N87.91 trillion at the end of September 2023, up from N87.38 trillion recorded in June.
The DMO’s comprehensive report, released on Wednesday, encompasses the combined domestic and external debts of the Federal Government, all 36 state governments, and the Federal Capital Territory.
Despite the overall increase in public debt, the DMO highlighted a notable decrease in the country’s total external debt, which fell from $43.16 billion in June to $41.59 billion by September 30, 2023.
This reduction is attributed to the redemption of a $500 million Eurobond and the commencement of repayments on the $3.4 billion loan secured from the International Monetary Fund (IMF) during the height of the COVID-19 pandemic, with $413.855 million already paid towards the principal.
Conversely, the domestic debt saw a rise of N1.80 trillion, which the DMO considers a moderate increase.The DMO emphasised that the servicing of these debts, alongside other financial obligations, underscores the Federal Government of Nigeria’s (FGN) dedication to meeting its debt responsibilities.
The report also pointed out that the initiatives and measures taken by the President to boost revenue generation are crucial for maintaining Nigeria’s fiscal stability.
The government’s commitment to debt servicing and proactive fiscal management are seen as vital steps in ensuring the nation’s economic health and its ability to meet future financial commitments.
According to the report, “External Debt decreased due to a redemption of a $500 million Eurobond and the payment of $413.855 million as first principal repayment of the $3.4 billion loan obtained from the International Monetary Fund in 2020 during COVID-19.
“The servicing of these Debts in addition to other Debts, are clear demonstrations of the FGN’s commitment to honouring its debt obligations. Notwithstanding, Mr President’s initiatives and actions towards revenue generation remain important for Nigeria’s overall fiscal balance.”
