BETWEEN April and June this year, Nigeria’s total public debt stock rose from N28.628tn ($79.303bn) to N31.009tn ($85.897bn), figures released by the Debt Management Office have revealed.
The N2.381tn or $6.593bn increase in the debt stock was as a result of the $3.36bn Budget Support Loan from the International
Monetary Fund, new domestic borrowing to finance the revised 2020 Appropriation Act, including the issuance of the N162.557bn Sukuk; and Promissory Notes issued to settle claims of exporters.
The DMO said it expected the public debt stock to grow as the balance of the new
domestic borrowing was raised and expected disbursements were made by the World
Bank, African Development Bank and the Islamic Development Bank, arranged to finance the 2020 Budget.
Recall that the 2020 Appropriation Act had to be revised in the face of the adverse impact of COVID-19 on Government’s Revenues and increased expenditure needs on
health and economic stimulus amongst others.
Additional Promissory Notes are expected to be issued in the course of the year.
This, and new borrowings by state
governments are also expected to increase the public debt stock.
The Minister of Finance, Zainab Ahmed, had said Nigeria faced significant medium-term fiscal challenges, especially with respect to its revenue, noting that steps were being taken to shore up revenue.
She added, “Weaker-than-expected economic performance threatens the ambitious revenue growth targets, as seen in the 2020 revised budget and the updated medium-term projections.
“Achieving fiscal sustainability and macro-fiscal objectives of government will require bold, decisive and urgent action. Government is determined to act as may be required.”
