Nigeria’s Public Debt Rises By 118%, Hits N97.3trn In 2023

Nigeria’s total public debt stock more than doubled to N97.3 trillion as at 2023 over the level in the previous year.
Latest data from the Dent Management Office (DMO) showed that the country’s total debt stock increased by 118 per cent year-on-year from N46.25 trillion as at December 2022 to N97.3 per cent in December 2023.

The DMO said the N97.3 trillion debt stock comprises of the domestic and external debt stocks of the Federal Government of Nigeria (FGN), 36 state governments and the Federal Capital Territory (FCT).
However, the public debt stock increased by N9.43 trillion in the last quarter of 2023 over the comparative figure for September 2023, which was largely due to new domestic borrowing by the FGN to part finance the deficit in the 2024 Appropriation Act and disbursements by multilateral and bilateral lenders,” DMO said on Friday.
Also, the massive depreciation of the Naira has resulted in a surge in the value of the country’s external debt which are dollar denominated.
Of the total debt, domestic debt constitutes a significant majority, standing at N59.12 trillion, accounting for 61 per cent of the total public debt stock.

Meanwhile, external debt amounted to 38.22 trillion Naira, representing the remaining 39 per cent.
Nigeria’s external debt structure reflects a strategic tilt towards loans from multilateral and bilateral lenders, which collectively
Despite the escalating debt figures, DMO says it maintains a commitment to implementing best practices in public debt management.

Moreover, concerted efforts by fiscal authorities to bolster revenue generation are anticipated to bolster debt sustainability moving forward. for 63.79 percent of the external debt stock. The dominance of these loans, primarily concessional and semi-concessional, underscores the nation’s prudent debt management strategy.
Despite the escalating debt figures, DMO says it maintains a commitment to implementing best practices in public debt management.
The sum of $3.5 billion was used to service external debt during the review period.

“Consistent with the debt management strategy, Nigeria’s external debt stock was skewed in favour of loans from multilateral (49.77 per cent) and bilateral lenders (14.02 per cent) or a total of 63.79 per cent which are mostly concessional and semi-concessional.

“Whilst the DMO continues to employ best practices in public debt management, the recent and ongoing efforts of the fiscal authorities to shore up revenue will support debt sustainability.”
Despite the escalating debt figures, DMO says it maintains a commitment to implementing best practices in public debt management.
Moreover, concerted efforts by fiscal authorities to bolster revenue generation are anticipated to bolster debt sustainability moving forward.