The Debt Management Office (DMO) has revealed a significant surge in Nigeria’s public debt, reaching N97.34 trillion in the fourth quarter of 2023. This marks a notable increase of 10.7% from the previous quarter’s N87.91 trillion.
The rise in debt levels can be largely attributed to new domestic borrowing initiatives by the Federal Government. These initiatives aim to partially finance the deficit outlined in the 2024 Appropriation Act, along with disbursements from both multilateral and bilateral lenders.
The DMO made this disclosure through a press statement released on Friday, providing detailed insights into the composition and reasons behind the escalation in the national debt figure.
Breaking down the numbers, the public debt comprises N59.12 trillion in domestic debt and N38.22 trillion in external debt. This composition underscores a strategic tilt towards domestic borrowing, constituting 61% of the total debt, while external sources contribute 39%.
Regarding external debt, the statement highlighted that a significant portion, 63.79%, originates from loans from multilateral and bilateral lenders. These loans are predominantly concessional or semi-concessional, reflecting efforts to manage the debt burden effectively.
The DMO reiterated its commitment to implementing best practices in public debt management. Additionally, it acknowledged the vital role of ongoing fiscal efforts to increase revenue, crucial for maintaining debt sustainability.
