TheCable

The Debt Management Office (DMO) says Nigeria’s total public debt rose to N87.91 trillion in the third quarter (Q3) of 2023.

DMO disclosed this on Wednesday.

The latest figure represents a 0.61 percent or N530 billion increase compared to N87.38 trillion recorded in the second quarter (Q2) of 2023.

In the previous quarter, the total debt stock had increased by 75.29 percent.

According to DMO, the surge was occasioned by the N22.71 trillion ways and means advances obtained by the federal government from the Central Bank of Nigeria (CBN). 

“The total public debt as at September 30, 2023, was N87.91 Trillion or $114.35 billion. The amount represents the domestic and external debts of the federal government of Nigeria (FGN), the thirty-six (36) state governments, and the federal capital territory,” DMO said. 

“At N87.91 trillion, the total public debt stock represents a marginal increase of 0.61% when compared to the June 30, 2023 figure of N87.38 trillion.

“This trend is explained by the decrease in external debt from $43.16 billion as at June 30, 2023, to $41.59 billion as at September 30, 2023, and a relatively moderate increase of N1.80 trillion in the domestic debt.”

The debt agency added that external debt decreased due to the redemption of a $500 million eurobond and the payment of $413.859 million as the first principal repayment of the $3.4 billion loan obtained from the International Monetary Fund (IMF) in 2020 during Covid-19.

“The servicing of these debts in addition to other debts, are clear demonstrations of the FGN’s commitment to its debt obligations. Notwithstanding, Mr President’s initiatives and actions towards revenue generation remain important for Nigeria’s overall fiscal balance,” DMO said.

In the 2024 budget proposal of N27 trillion, the federal government plans to borrow N7.83 trillion as part of measures to bridge the budget deficit of N9.18 trillion.

In November, the federal government said it would reduce its dependence on borrowings.