Nigeria owes N33tr – DMO

The Debt Management Office (DMO) had in March placed Nigeria’s public debt at N32.915 trillion.

In a statement, DMO stated that the debt as at December 31, 2020 included the debt stock of the federal and state governments as well as the Federal Capital Territory (FCT).

It had pointed out that after Nigeria exited from recession in 2017, the level of new borrowings at the federal level in the Annual Appropriation Acts had been reducing due to measures to ensure moderate rate of growth in the Public Debt Stock for debt sustainability.

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“New borrowing to part finance budget deficits had declined steadily from N2.36tr in 2017 to N2.01tr in 2018, N1.61tr in 2019 and N1.59tr in the first 2020 Appropriation Act.”

It noted that apart from the new domestic borrowing of N2.3tr, the other new borrowings were concessional loans from the IMF, $3.34 billion, and other multilateral and bilateral lenders.

“Total Public Debt to Gross Domestic Product as at December 31, 2020 was 21.61 per cent, which is within Nigeria’s new limit of 40 per cent.”

According to the annual Nigeria’s External Debt Stock of 2020, 53.78% of the country’s debt is owed to multilateral organisations; debt from bilateral was at 12.17%, commercial debt was 33.49% and promissory notes formed 0.56% of the debt profile.

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A breakdown of the debt showed that multilateral organisations like the International Monetary Fund (IMF) is owed 3,535.23, International Development Association 11,123.04, International Bank for Reconstruction and Development. 409.74.

African Development Bank is owed 1,600.53, Africa Growing Together Fund 0.17 African Development Fund 949.34; Arab Bank for Economic Development in Africa 5.88; European Development Fund 54.83; Islamic Development Bank 30.08 and the International Fund for Agricultural Development 224.80 culminating to a total of 17,933.64.

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Bilateral debt sees Nigeria owing China (Exim Bank of China) 3,264.16; France (Agence Francaise Development) 493.71; Japan (Japan International Cooperation Agency) 80.20; India (Exim Bank of India) 37.00 and Germany (Kreditanstalt Fur Wiederaufbua) 184.32, making a total of 4,059.39.

Commercial debt from Eurobonds is 10,868.35 and Diaspora Bond 300.00, with a total of 11,168.35, Promissory Notes stood at 186.70 with a grand total of 33,348.08.

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