Nigeria’s public debt profile  increased to N87.91 trillion at the end of the third quarter of 2023.

This was according to a statement issued by the Debt Management Office (DMO) on Wednesday, December 20, 2023.

The DMO stated that the amount represented domestic and external debts of the Federal Government, the 36 state governments, and the Federal Capital Territory, Abuja.

The debt office said the debt stock represented a marginal increase of 0.61% when compared to the June 30, 2023 figure of N87.38trn.

It further said that the domestic debt increased by N1.8trn while external debt reduced from $43.16bn as of June 30, 2023, to $41.59bn at the end of the third quarter.

“The amount represents the Domestic and External Debts of the Federal Government of Nigeria, the thirty-six State Governments, and the Federal Capital Territory.

“At N87.91 Trillion, the Total Public Debt Stock represents a marginal increase of 0.61% when compared to the June 30, 2023 figure of 87.38 Trillion.

“This trend is explained by the decrease in External Debt from USD43.16 Billion as at June 30, 2023, to USD41.59 Billion as at September 30, 2023, and a relatively moderate increase of N1.80 trillion in the Domestic Debt.”

The statement also noted, “External Debt decreased due to a redemption of a USD500 million Eurobond and the payment of USD413.859 million as first principal repayment of the USD3.4 Billion Loan obtained from the International Monetary Fund in 2020 during Covid-19.

“The servicing of these Debts in addition to other Debts, are clear demonstrations of the FGN’s commitment to honouring its debt obligations.”

The International Monetary Fund (IMF) has stated that Nigeria’s total debt profile of over N87 trillion is still within the moderate level of any country. However, the rising debt profile could have some negative impacts on the country’s economy, such as increased interest payments, reduced government spending on social services, and a decline in investor confidence.
The reforms introduced by the present administration and those that may emerge from the recommendations of the Fiscal Reform and Tax Policies will further impact debt strategy and debt sustainability.