Following the Central Bank’s decision to securitize overdrafts, Nigeria’s overall public debt has risen dramatically to around N87.4 trillion. The Debt Management Office (DMO) estimates Nigeria’s total public debt at N87.38 trillion by the end of the second quarter of 2023 in its most recent assessment.
This result indicates a 75.29 percent rise, or N37.53 trillion, as compared to the N49.85 trillion recorded in the first quarter of fiscal year 2023. Foreign debt continues to increase in accordance with exchange rate fluctuations.
Nigeria’s debt agency reported that the overall public debt now includes the N22.71 trillion Ways and Means Advances of the apex bank as the Federal Government’s lender of last resort. Domestic borrowings are responsible for the largest chunk of the nation’s total obligation.
The DMO stated, “Nigeria’s total public debt stock as of June 30, 2023, was N87.38 trillion ($113.42 billion). It comprises the total domestic and external debts of the Federal Government of Nigeria, the thirty-six states, and the Federal Capital Territory.
“The major addition to the Public Debt Stock was the inclusion of the N22.712 trillion securitized FGN’s Ways and Means Advances.”
At the end of June, external debt accounted for 38.05% of Nigeria’s total public debt. It was noted that the Federal Government owes 34.22% of foreign debt, while 36 states and FCT borrowings accounted for 3.81%. Total domestic borrowings is 61.95% of Nigeria’s debt exposures, of which FG debts account for 55.29% and States 6.66%
Foreign currency loans were converted at the Central Bank of Nigeria (CBN) Official Exchange Rate of US$1 to N770.38 as of June 30, 2023, DMO said.
