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Nigeria’s total public debt has jumped to N38.05 trillion naira at the end of the third quarter of 2021, according to Debt Management Office (DMO). This translates to 18% growth in 12-months amidst a $4 billion Eurobond raise in September 2021.
A year ago, Nigeria’s total public debt was printed at N32.22 trillion, and by the end of the second quarter in 2021, Nigeria’s Debt Office announced total public debt settled at N35 trillion.
A $4 billion Eurobond sale in September – to enable the government to fund its budget, support the currency and boost forex reserves – accounted for a 7% rise in debt from the second quarter, the DMO said in a statement.
Nigeria is considering issuing more Eurobonds, but debt service is a concern. In November, the Senate approved external dollar-denominated borrowing from China and other foreign lenders of $16.23 billion to fund projects in different sectors of the economy.
DMO said its latest data which includes the total external and domestic debts of the Federal Government of Nigeria (FGN), thirty-six (36) State Governments and the Federal Capital Territory (FCT), shows that Nigeria’s Public Debt was N38.005 trillion or US$92.626 billion at the end of Q3 2021.
The increase of N2.540 trillion, when compared to the corresponding figure of N35.465 trillion at the end of Q2 2021, was largely accounted for by the US$4 billion Eurobonds issued by the Government in September 2021.
DMO said the issuance of the US$4 billion 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 the necessary capital to enable the Federal Government to finance various projects in the Budget.
The triple tranche US$4 billion Eurobond, issued in September 2021, was for the implementation of the New External Borrowing of US$6.18 billion in the 2021 Appropriation Act, DMO explained.
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