Nigeria’s public debt stands at ₦32.2trn by end of third quarter ― DMO

Nigeria’s total public debt as at September 2020 stood at ₦32.223 trillion or $84.574 billion according to statistics released by Debt Management Office (DMO).

This total amount is owed by federal and sub-national governments put together.

The total amount represents 37.82% owed as external, while 62.18% are domestic debts.

As at March and June ending, the total public debt stood at about N28trn and N31trn respectively.

A statement received from DMO stated that “FGN, state governments and FCT all recorded increases in their debt stock due to borrowings to enable them to respond appropriately to the COVID-19 pandemic and to meet revenue shortfalls”.

“The increase in the Debt Stock by ₦2.381 Trillion or USD6.593 Billion was accounted for by the USD3.36 Billion Budget Support Loan from the International Monetary Fund, New Domestic Borrowing to finance the Revised 2020 Appropriation Act including the issuance of the ₦162.557 billion Sukuk, and Promissory Notes issued to settle Claims of Exporters”.

The statement further explained that issuance of Promissory Notes by the FGN to settle inherited liabilities have also contributed to the growth in the Public Debt Stock since the year 2018 when they were first issued. 

“While N20.136 Billion of Promissory Notes were issued in Q3, 2020, as at September 30, 2020, the Promissory Notes Outllion.”

According to the statement, the public debt stock is expected 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 recalled that the 2020 Appropriation Act had to be revised in the face of the adverse and severe impact of COVID-19 on Government’s Revenues and increased expenditure needs on health and economic stimulus amongst others. 

“Additional promissory notes are expected to be issued in the course of the year, this, and new borrowings by state governments are also expected to increase the public debt stock”.

This would all be taken into cognisance when fourth-quarter details are eventually released, the statement pointed out.