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The Debt Management Office (DMO) of Nigeria has announced that the country’s public debt soared to N97.34 trillion ($108 billion) as of the fourth quarter of 2023.
This revelation was made in a statement released by the DMO and made available to journalists on Friday.
Public debt serves as a crucial avenue for countries to secure additional funds for economic development, enabling them to undertake larger projects that contribute to their overall progress and growth.
According to the statement, “Nigeria’s public debt stock as at December 31, 2023, was N97.34 trillion or $108.229 billion.”
“This amount encompasses both the domestic and external debt stocks of the Federal Government of Nigeria, the 36 states governments, and the Federal Capital Territory.”
The disclosed figures represent a substantial increase compared to the N89.43 trillion recorded in September 2023, with the surge primarily attributed to new domestic borrowing by the government to partially fund the deficit outlined in the 2024 Appropriation Act, as well as disbursements from multilateral and bilateral lenders.
Of the total public debt stock, domestic debt stands at N59.12 trillion, constituting 61 percent, while external debt amounts to N14.3822 trillion, representing the remaining 39 percent.
“Aligning with the debt management strategy, Nigeria’s external debt stock is predominantly comprised of loans from multilateral (49.77 percent) and bilateral lenders (14.02 percent), totaling 63.79 percent, most of which are concessional and semi-concessional,” the statement added.
The DMO reaffirmed its commitment to implementing best practices in public debt management and emphasized the ongoing efforts of fiscal authorities to bolster the country’s revenue base.
“While the DMO remains dedicated to employing best practices in public debt management, the recent and ongoing initiatives by fiscal authorities to enhance revenue will contribute to debt sustainability,” the statement concluded.
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