More Borrowing has Increased Nigeria’s Public Debt to N38trn in 2021, DMO Says

• Nigeria's debt has increased in 2021 as states and the Federal Capital Territory added to the national debt, making Nigeria indebted to trillions
• The debts include both local and foreign which have further burdened the country as crude oil sales dwindle and inflation rises
• Nigeria's stands at over N38 trillion which has increased from N35 trillion in the same period last year

The Debt Management Office said that Nigeria’s public debt has hit N38.005 trillion at the end of Q3.

The debts include both external and domestic of the federal government, the 36 state governments and the FCT, Abuja.

More trillions added to the national debt

The debt represents a spike of N2.54 trillion within three months compared to the N35.46 trillion recorded in the same period at the end of June of 2021.

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The DMO said in a statement on Tuesday, 14 December 2021 that the increase is due to N6.6 trillion in Eurobonds issued by the federal government in September, according to a report by TheCable.

External Reserves grows

The DMO said that issuing the N1.6 trillion Eurobonds brought a lot of benefits to the economy by increasing Nigeria’s External Reserves and supporting the Naira Exchange Rate and providing the necessary funds to enable the Federal Government to finance various projects in the budget.

The DMO said:

“In line with its practice, the Debt Management Office has published Nigeria’s Total Public Debt as at September 30, 2021. The Data, which includes the Total External and Domestic Debts of the Federal Government of Nigeria, thirty-six State Governments, and the Federal Capital Territory, shows that Nigeria’s Public Debt was N38.005tn or $92.626bn at the end of Q3 2021,” the statement reads.

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“The increase of N2.540tn when compared to the corresponding figure of N35.465 trillion at the end of Q2 2021 was largely accounted for by the N1.6 trillion ($4bn) Eurobonds issued by the Government in September 2021.

“The triple tranche N1.6 trillion ($4bn) Eurobond, issued in September 2021, was for the implementation of the New External Borrowing of $6.18bn in the 2021 Appropriation Act.”

National debt triples in seven years

Legit.ng has reported that rights activist, Chidi Odinkalu, said Nigeria’s debt profile has increased three times in the last seven years, that is since Muhammadu Buhari mounted the saddle as Nigeria’s president.

Odinkalu said this in a tweet but did not expatiate as he only provided an undated chat from the Nigeria Bureau of Statistics (NBS).

Odinkalu may not be an economist but available data from Debt Management Office (DMO) says Nigeria’s debt profile has soared to about N35.65 trillion recently because of increased borrowing by Buhari's government.

Source: Legit.ng