BREAKING: Panic As Nigeria’s Debt Rises To N31trn

The Debt Management Office (DMO), on Wednesday, September 9, released Nigeria’s total public debt stock as of June 31, 2020, and put the country’s entire debt at N31.009trillion, indicating 8.3 percent rise from N28.628 trillion in March 2020.

According to Vanguard, the figure comprised the debt stock of the federal government, the 36 state governments and the Federal Capital Territory (FCT).

The DMO, in a report yesterday, explained that:

“The increase in the Debt Stock by N2.381 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 N162.557 Billion Sukuk, and Promissory Notes issued to settle Claims of Exporters.

The DMO expects the Public Debt Stock 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.

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.”