The Debt Management Office of Nigeria has announced that the country’s public debt has risen to N97.34tn ($108bn) in the fourth quarter of 2023. This increase in public debt is crucial for Nigeria to secure additional funds for economic development and execute larger projects that can contribute to its growth.
According to the statement released by the DMO, Nigeria’s public debt stock as of December 31, 2023, was N97.34trn or $108.229bn. This amount includes both domestic and external debt held by the Federal Government of Nigeria, the 36 state governments, and the Federal Capital Territory.
The significant increase in public debt from N89.43tn in September 2023 is primarily attributed to new domestic borrowing by the government to finance the deficit in the 2024 Appropriation Act and disbursements from multilateral and bilateral lenders. Total domestic debt accounted for 61% of the public debt stock at N59.12tn, while external debt stood at N14.3822trn, representing 39% of the total.
The DMO highlighted that Nigeria’s external debt stock is predominantly made up of loans from multilateral and bilateral lenders, totaling 63.79%. These loans are mostly concessional and semi-concessional, aligning with the country’s debt management strategy.
Despite the increase in public debt, the DMO reassured the public that it continues to implement best practices in debt management and is dedicated to enhancing the country’s revenue. The ongoing efforts of the fiscal authorities to boost revenue will contribute to ensuring debt sustainability in Nigeria.
In conclusion, Nigeria’s rising public debt reflects the country’s commitment to economic development and growth. By effectively managing its debt and increasing revenue, Nigeria aims to strengthen its financial position and support sustainable development initiatives.
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