Public debt soars to $108bn in Q4, 2023 — DMO
By Sodiq Adelakun
The Debt Management Office (DMO) of Nigeria has announced that the nation’s public debt has surged to a staggering $108 billion (approximately N97.34 trillion) as of the fourth quarter of 2023.
In a statement released on Friday, the DMO revealed that the substantial increase in public debt encompasses both domestic and external debts of the Federal Government of Nigeria, the 36 state governments, and the Federal Capital Territory.
Public debt serves as a crucial means for countries to secure additional funds for economic development initiatives. By leveraging public debt, a nation like Nigeria can undertake larger-scale projects aimed at fostering its overall development and growth.
The statement from the DMO emphasised, “Nigeria’s public debt stock as at December 31, 2023, was N97.34 trillion or $108.229 billion.” This revelation underscores the significance of managing and monitoring public debt levels to ensure sustainable economic progress and stability within the country.
The statement partly read, “Nigeria’s public debt stock as at December 31, 2023 was N97.34trn or $108.229bn.”
“This amount comprises the domestic and external debt stocks of the Federal Government of Nigeria, the 36 states governments and the Federal Capital Territory.”
The recent disclosure from the Debt Management Office (DMO) highlights a substantial uptick in Nigeria’s public debt, marking a significant increase from the N89.43 trillion recorded in September 2023.
According to the DMO, this surge primarily stems from fresh domestic borrowing by the government, aimed at addressing the deficit outlined in the 2024 Appropriation Act, alongside funds disbursed by multilateral and bilateral lenders.
Of the total public debt stock, domestic debt stands at N59.12 trillion, constituting 61 percent, while external debt amounts to N14.3822 trillion, making up the remaining 39 percent.
“Consistent with the debt management strategy, Nigeria’s external debt stock was skewed in favour of loans from multilateral (49.77 percent) and bilateral lenders (14.02 per cent ) or total of 63.79 per cent which are mostly concessional and semi concessional,” the document added.
The DMO says it has continued to employ the best practice in public debt management and is committed to shore up the country’s revenue.
“Whilst the DMO continues to employ best practice in public debt management, the recent and on-going efforts of the fiscal authorities to shore up revenue will support debt sustainability,” it stated.
