Tinubu’s Govt Continues Repayment of Loan Collected Under Buhari, Reduces Nigeria’s External Debt

Tinubu’s Govt Continues Repayment of Loan Collected Under Buhari, Reduces Nigeria’s External Debt

  • Nigeria has successfully redeemed some of its debt obligations, helping to reduce its total external loans
  • The latest data from the Debt Management Office showed that Nigeria's external debt was reduced by over $1bn
  • Nigeria owes different countries and international financing organisation

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

The administration of President Bola Tinubu has reduced Nigeria's external debt stock by $1.57 billion to $41.59 billion as of September 30, 2023, from $43.16 billion it stood in June 2023.

This is according to the third quarter public debt report published by the Debt Management Office (DMO).

Nigeria's external debt
Nigeria's external debt reduced by over $1bn Photo credit: Presidency
Source: Facebook

Why has external debt declined?

The decline DMO said, is due to the redemption of Nigeria's $500 million Eurobonds and the first principal payment of $413.859 million from the IMF's $3.4 billion loan obtained during the 2020 COVID-19 period.

Read also

After 5 days of gain, the naira weakens against the dollar as CBN speaks on cash scarcity

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Part of the report reads:

“External debt decreased due to a redemption of USD500 million Eurobond and the payment of USD 413.859 as first principal repayment of the USD4.3 billion obtained from the International Monetary Fund (IMF) in 2020 during COVID-19″

Here is a breakdown of Nigeria's debt balance to countries

  • China- $4.81 billion
  • France - $563.Tinubu'son
  • Japan -$55.34 million
  • India - $23.66 million
  • Germany - $134.92 million

Nigeria's total public debt

DMO also revealed that Nigeria’s total public debt increased marginally from N87.38 trillion at the end of June 2023 to N87.91 trillion ($114.35 billion) as of September 30, 2023.

This represents a rise of just 0.61% within three months.

The DMO also stated that the domestic debt stock of the country increased by N1.80 trillion to N50.19 trillion at the end of the third quarter.

Read also

Nigeria successfully repays Chinese, World Bank loans as debt servicing jumps by 277.64 Per Cent

Nigeria still repaying World Bank loan borrowed under IBB, 107 others

Legit.ng earlier reported that the Nigerian government is repaying about $14.12 billion in World Bank loans.

The amount is the funds disbursed on about 108 approved loans, data from the website of the World Bank shows.

The oldest loan being serviced was approved almost 40 years ago under General Ibrahim Babangida.

Source: Legit.ng

Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

Online view pixel