Nigeria now owes N31.01trn in total public debt, N2.38trn accretion in 3 months

Charles Abuede

FG: N25.28trn; 36 States + FCT: N5.73trn
Lagos, Rivers, Akwa Ibom, highest debts
Yobe, Jigawa and Ebonyi, lowest debtors

Nigeria’s total public debt rose by N2.38 trillion to reach N31.01 trillion as at the end of June 2020, according to the country’s Debt Management Office (DMO). The current debt profile includes the total debt stock of the federal government, the 36 states of the federation and the federal capital territory (FCT). In a statement released during the week, the DMO said the N2.38 trillion by which it rose was accumulated in the three months period from April to June 2020, with the increase in debt stock accounted for by the $3.36 billion budget support loan from the International Monetary Fund (IMF) and new domestic borrowings to enhance the financing of the revised 2020 Appropriation Act. “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 Federal Capital Territory, stood at N31.009 trillion or $85.897 billion. The corresponding figures for March 31, 2020, were N28.628 trillion or $79.303 billion. “The increase in the debt stock by N2.38 trillion or $6.593 billion was accounted for by the $3.36 billion budget support loan from the International Monetary Fund (IMF), New Domestic Borrowing to finance the Revised 2020 Appropriation Act including the issuance of the N162.56 billion Sukuk, and Promissory Notes issued to settle Claims of Exporters,” the DMO explained. An analysis of the total debt stock shows that the public debt profile amounted to N11.36 trillion of the figure, while the other N19.56 trillion was accounted for by the domestic debt portfolio. Additionally, the federal government’s external debt profile stands at N9.82 trillion while the 36 states, including the FCT, account for the other N1.54 trillion of the total debt stock. On the other hand, domestic debt profile shows that the federal government accounts for N15.46 trillion, while the 36 states and the FCT account for a combined N4.19 trillion of the total national debt commitment, where Lagos State accounts for the highest debt stock among the 36 states and the FCT. Accordingly, Rivers and Akwa Ibom states also account for high domestic debts of N266.9 billion and N239.2 billion respectively as at the close of June 2020, while Delta, Cross River, Imo and Bayelsa states recorded N235.8 billion, N165 billion, N158.1 billion and N150 billion respectively. Meanwhile, Yobe (N29.2 billion), Jigawa (N36 billion), Ebonyi (N41 billion), and Katsina (N44.4 billion) were the states with the lowest debt stock during the period under review In essence, aggregate debt stock of the federal government stands at N25.28 trillion while the sub-national governments owe an aggregate of N5.73 trillion of the total debts. The DMO, in the statement, also hinted of what lies ahead, saying it expects the public debt stock to grow as the balance of the new domestic borrowing is increased and expected payouts are made by the World Bank, the African Development Bank and the Islamic Development Bank, which were approved to finance the 2020 budget. Similarly, the 2020 Appropriation Act was modified in the face of the adverse impact of COVID-19 on government’s revenues and increased expenses on health and economic stimulus, amongst others, the DMO said, noting that additional promissory notes are expected to be released before the year ends, as this and new borrowings by the 36 states are also expected to increase the public debt stock.

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