In a recent report released by the Debt Management Office (DMO), Nigeria’s total public debt as of September 30, 2023, amounted to ₦87.91 trillion or $114.35 billion. This figure encompasses both domestic and external debts owed by the federal government, the 36 state governments, and the Federal Capital Territory (FCT).
The total public debt stock shows a marginal increase of 0.61 per cent compared to the June 30, 2023 figure of ₦87.38 trillion. The observed trend was attributed to a decrease in external debt from $43.16 billion as of June 30, 2023, to $41.59 billion as of September 30, 2023. Concurrently, there was a relatively moderate increase of ₦41.80 trillion in domestic debt during the same period.
The reduction in external debt can be attributed to the redemption of a $500 million Eurobond and the payment of $413.859 million as the first principal repayment of the $3.4 billion loan obtained from the International Monetary Fund (IMF) in 2020 during the Covid-19 pandemic.
In a statement released on Wednesday, the DMO emphasised the government’s commitment to servicing its debts, stating that, “The servicing of these debts in addition to other debts are clear demonstrations of the FGN’s commitment to honoring its debt obligations.”
The statement further highlighted the importance of President Bola Tinubu’s initiatives and actions toward revenue generation, emphasizing their crucial role in Nigeria’s overall fiscal balance.
The report sheds light on the government’s efforts to manage and meet its financial obligations responsibly.
As Nigeria navigates economic challenges, the balance between debt servicing and revenue generation emerges as a critical factor in maintaining fiscal stability.
The government’s commitment to addressing these challenges is highlighted in its proactive approach to debt management and adherence to debt repayment obligations.
It remains to be seen how ongoing initiatives aimed at boosting revenue will impact the country’s fiscal landscape moving forward.
As the government continues to navigate economic complexities, the prudent management of public debt and effective revenue-generating strategies will play a pivotal role in steering Nigeria toward sustainable financial health.
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