Nigeria’s debts increase by N191bn in three months

The Debt Management Office (DMO) stated on Wednesday that the country added N191 billion to its debt stock between January and March.

As a result, Nigeria’s overall debt has increased to N33.107 trillion as of the end of March 2021, up from N32.916 trillion in December 2020.

The debt stock comprises of the Federal Government of Nigeria, 36 state governments, and the Federal Capital Territory, according to a press release released on the DMO website.

The total Debt Stock also includes Promissory Notes in the sum of N940.220 billion issued to settle the inherited arrears of the FGN to State Governments, Oil Marketing Companies, Exporters and Local Contractors.

“Compared to the total public debt stock of N32.92tn as at December 31, 2020, the increase in the debt stock was marginal at 0.58 per cent,” DMO said

A further analysis of the public debt stock showed that the domestic debt stock grew by 2.11 per cent from N20.21trillion in December 2020 to N20.637 trillion as of the end of March 31, 2021.

The FGN’s share of the domestic debt includes FGN bonds, Sukuk and green bonds used to finance infrastructure and other capital projects as well as the N940.22bn promissory notes, according to the DMO.

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“External debt stock declined from $33.348bn as at December 31, 2020 to $32.86bn due to the redemption by Nigeria of the $500m Eurobond in January 2021,” it said.

The DMO had said in January that the 6.75 per cent $500m 2021 Eurobond, which was issued in January 2011, was Nigeria’s first foray into the international capital market.

It further stated that the issuing of the Eurobond helped Nigeria to diversify its financing sources, as it successfully obtained a total of $10.67 billion from the market following the issuing of the Eurobond to finance the execution of the federal budgets.

By David Ibemere…

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