BREAKING: Nigeria’s debt tops N31trn – DMO

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…Rises by N2.3trn ($6.593bn)

Nigeria’s total public debt stock increased by N2.38trn within a period of three months from N28.628 trillion ($79.303 billion as at March 31, 2020, to N31,009 trillion ($85.897 billion) by June 30, 2020, according to the latest statistics released by the Debt Management Office in Abuja on Wednesday.

The nation’s total public debt stock includes the debt stock of the Federal Government, the 36 states and the Federal Capital Territory.

Also released by the DMO is the report on Nigeria’s Actual External Debt Service Payments in Q2, 2020 as well as Nigeria’s External Debt Stock as of June 30, 2020.

The debt office explained that the increase in the public debt stock by N2.381trn or $6.593bn was accounted for by the $3.36bn budget support loan from the International Monetary Fund, new domestic borrowing to finance the revised 2020 Appropriation Act.

It said this includes the issuance of the N162.557bn Sukuk, and promissory notes issued to settle claims of exporters.

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.”

It stated that additional promissory notes were expected to be issued in the course of the year.

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

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