Nigeria’s external debt drops by $1.57 billion, now at $41.59 billion in Q3 – DMO

Nigeria’s total external debt stock declined by $1.57 billion in the third quarter of 2023 from $43.16 billion to $41.59 billion as of September 30, 2023.

This is according to the third quarter public debt report published by the Debt Management Office (DMO).

According to the statement, the reason for the decline is due to the redemption of Nigeria’s $500 million Eurobonds and the first principal payment of $413.859 million the IMF’s $3.4 billion loan obtained during the 2020 covid-19 period.

It stated: “External debt decreased due to a redemption of USD500 million Eurobond and the payment of USD 413.859 as first principal repayment of the USD4.3 billion obtained from the International Monetary Fund (IMF) in 2020 during COVID-19″

Total Public debt

The statement also noted that Nigeria’s total public debt increased marginally from N87.38 trillion at the end of the second quarter to N87.91 trillion ($114.35 billion) as of September 30, 2023. This represents a rise of just 0.61% within three months

The DMO also stated that the domestic debt stock of the country increased by N1.80 trillion to N50.196 trillion at the end of the third quarter.

Insights

Nigeria’s total public debt increased astronomically to N87.38 trillion in the second quarter due to the securitization of the N22.712 trillion Ways and Means advances from the CBN.

Nairametrics recently reported a statement from the Director-General of the DMO wherein she stated that the domestic borrowing plan of N7.04 trillion has been achieved

In the 2024 budget proposal before the National Assembly, the federal government plans to borrow N7.83 trillion as part of measures to bridge the budget deficit of N9.18 trillion. However, the federal government is also looking to reduce its dependence on debts and raise revenue.

President Tinubu has earlier set up a committee on fiscal policy and tax reforms to look into the tax laws and introduce reforms that will increase the nation’s revenue and block leakages.

The Federal Inland Revenue Service (FIRS) has set a target of 18% revenue to GDP in the next three years to reduce the federal government’s dependence on debt.