Nigeria’s debt hits N31trn in three months – DMO

The Debt Management Office, DMO, on Wednesday released Nigeria’s total public debt stock, putting it at N31.009 trillion as of June 30, 2020.

The country’s total public debt stock includes the debt stock of the Federal Government, the 36 state governments, and the Federal Capital Territory (FCT).

In a statement released by the DMO, it explained; “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.”

For the country’s public debt stock as of June 30, 2020, the DMO said; “The data shows that in naira terms, the total public debt stock which comprises the debt stock of the Federal Government, the 36 state governments and the FCT stood at N31.009trn or $85.897bn.

“The corresponding figures for March 31, 2020, were N28.628trn or $79.303bn.”

The debt office added; “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.

“Recall that 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, among others.”

The Debt Management office stated that additional promissory notes were expected to be issued in the course of the year.

In addition, it said new borrowings by state governments were also expected to increase the public debt stock.

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