Nigeria’s Debt Management Office (DMO), has announced that the country’s public debt soared to N97.34 trillion ($108 billion) in the fourth quarter of 2023.
On Friday, the DMO released a statement to journalists, shedding light on the nation’s escalating debt burden.
The statement from the DMO partly read, “Nigeria’s Public Debt Stock as of December 31, 2023, was N97.34tn or $108.229bn.”
“This amount comprises the Domestic and External Debt Stocks of the Federal Government of Nigeria, the 36 States Governments and the Federal Capital Territory.”
According to the DMO, the surge in debt was primarily driven by new domestic borrowing to partially fund the deficit outlined in the 2024 Appropriation Act, as well as disbursements from multilateral and bilateral lenders. The Total Domestic Debt, amounting to N59.12 trillion, accounted for 61% of the Total Public Debt Stock, while External Debt stood at N38.22 trillion, representing the remaining 39%.
In terms of external borrowing, the DMO revealed that a significant portion of Nigeria’s External Debt Stock was sourced from multilateral and bilateral lenders, constituting approximately 63.79% of the total. These loans are predominantly concessional and semi-concessional, aligning with the country’s debt management strategy.
Despite the alarming increase in public debt, the DMO said it is committed to employing best practices in public debt management.
Additionally, the agency acknowledged the ongoing efforts of fiscal authorities to enhance revenue generation, stating that such endeavors would contribute to debt sustainability.
