18.1 C

Nigeria’s debt profile now over N20 trillion, says Debt Management Office



1min read
Patience Oniha, Director General of the Debt Management Office

The Debt Management Office says Nigeria’s total debt stock stood at N20.37 trillion as at September 30 this year.

This represents a 3.6 percent increase from the N19.64 trillion debt profile as at June 30.

According to a statement made available to journalists in Abuja on Tuesday, the DMO said domestic debt accounted for 76.96 percent, while external debt made up the remaining 23.04 percent.

Specifically, the domestic debt stock stood at N15.68 trillion, an increase of 4.1 per cent when compared to N15.03 trillion as at June 30.

External debt, on the other hand, rose by 1.9 percent to N4.69 trillion, from the N4.6 trillion under the same period.

According to DMO, the data shows that the federal government was right when it said that the country’s huge domestic debt was partly responsible for the high cost of debt servicing.

This is why the DMO supports President Muhammadu Buhari’s recent move to secure a fresh $5.5 billion external debt.

- Advertisement -

The amount which comprises of $2.5 billion in new borrowing to partly finance the N2.32 trillion deficit in the 2017 Appropriation Act and $3 billion to repay maturing domestic debt is expected to achieve a reduction in interest costs of about N75 billion and N91 billion respectively when compared to the interest cost of borrowing in Naira in the domestic market.

It will also contribute to attaining FG’s target ratio of 60:40 between domestic and external debt, the DMO said.

The DMO further explained that increased external borrowing will result in more availability of funds to the private sector and lower domestic lending rates.

These will enable the private sector contribute to growth and lead to higher level of external reserves to support the Naira exchange rate.

Support the ICIR

We need your support to produce excellent
journalism at all times.

If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation



Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Support the ICIR

We need your support to produce excellent journalism at all times.



Amaechi eyes speedy completion of Lekki Port

Minister of Transportation Rotimi Amaechi has tasked promoters of the Lekki Port to double...

Obasanjo insists he won’t return to PDP despite party pressure

A FORMER Nigerian President Olusegun Obasanjo, on January 22, informed a delegation of leaders...

ICIR Twitter conversation looks deep into the IELTS controversy

THE International Centre for Investigative Reporting (ICIR) held a Twitter Space conversation on the...

Borno Police arrest 51 suspects, recover fake military official stamp

THE Borno State Police say  they have arrested 51 suspects and recovered fake official...

As Nigerian government slumbers, N144bn Aba shoe industry crawls

RESEARCHERS estimate the market size of Aba shoe industry at N144 billion ($350.364 million)....

Most Read


Subscribe to our newsletter