Nigeria’s debt rises by N2.54tn in three months, hits N38tn, says DMO

The Debt Management Office on Tuesday disclosed that Nigeria’s public debt was N38.005tn as of the end of the third quarter of 2021.

In a press statement titled, ‘DMO publishes total public debt for Q3 2021’, and published on the DMO’s website, the debt agency said the total debt figure comprised total external and domestic debts of the Federal Government , the 36 states and the Federal Capita Territory.

The statement read in part, “In line with its practice, the Debt Management Office has published Nigeria’s total public debt as at September 30, 2021. The data which includes the total external and domestic debts of the Federal Government of Nigeria, 36 state governments and the Federal Capital Territory, shows that Nigeria’s public debt was N38.005tn or $92.626bn at the end of Q3 2021.

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The total debt stock rose by N2.540tn in three months from June 30 to September 30, 2021.

The statement further said, “The increase of N2.540tn when compared to the corresponding figure of N35.465tn at the end of Q2 2021 was largely accounted for by the $4bn Eurobonds issued by the Government in September 2021.”

It added, “The issuance of the $4bn Eurobonds has brought significant benefits to the economy by increasing the level of Nigeria’s external reserves, thereby supporting the naira exchange rate and providing necessary capital to enable the Federal Government finance various projects in the budget.

“The triple tranche $4bn Eurobond, issued in September 2021, was for the implementation of the new external borrowing of $6.18bn in the 2021 Appropriation Act.”

The Federal Government has come under heavy criticism for engaging in borrowing spree under the present administration.

Also, the National Assembly has also asked the executive to explore other sources to increase its revenue and cut down on borrowing.