“N97.34 Trillion Debt:” DMO Names Nigeria’s Largest External Creditors as of December 2023

• Nigeria’s total public debt has risen to an estimated N97.34 trillion or $108 billion as of December 2023
• The Debt Management Office (DMO) says Nigeria’s debt profile ballooned due to CBN’s N22 trillion Ways and Means advances
• China, the International Monetary Fund, the African Development Bank, and the World Bank constitute Nigeria’s top external creditors

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Data from the Debt Management Office (DMO) shows that Nigeria’s total public debt is N97.34 trillion, or $108 billion, as of December 2023.

The amount represents a 146% increase from the N39.56 trillion recorded at the end of 2022.

CBN's Ways and Means increased Nigeria's debt

Analysts believe the CBN’s N22 trillion Ways and Means advances significantly contributes to Nigeria’s growing debt, leading to the government devaluing the local currency by about 60%.

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The federal and state governments reportedly owe a combined domestic and external debt amounting to N97.34 trillion.

Domestic debt comes mainly from FGN securities, treasury bills, and CBN’s Ways and Means advances.

Nigeria owes countries such as China, France, Germany, and Japan, which comprise the country’s bilateral debts. Multilateral debts are owed to institutions such as the International Monetary Fund (IMF), the World Bank, the Islamic Development Bank, and the African Development Bank (AfDB).

Nigeria's domestic debts come from bonds

Regarding domestic debt, the Nigerian government borrows money by issuing bonds in local currency to the domestic market.

DMO data shows that federal and state governments owe a combined domestic debt of N59.12 trillion, of which state governments owe about N5.86 trillion.

FGN bonds constitute the most significant source of domestic debt, with N59.12 trillion totalling 40% of the country’s total debt.

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According to reports, Nigeria’s total external debt balance as of December 2023 is $42.5 billion, with states owing $.61 billion.

Nigeria's top external creditors

• Islamic Development Bank: $238.17 million
• Africa Growing Together Fund: $23.35 million
• Exim Bank of China: $5.17 billion
• International Development Association: $14.96 billion
• International Fund For Agricultural Development: $277.4 million.

Nigeria successfully repays creditors

Legit.ng previously reported that the Paris Club of Creditors has agreed with the Somalia government to cancel 99% of the country’s debt, currently at $2 billion.

The group disclosed this in a statement on Wednesday, March 13, 2024, saying it would forgive the country’s nominal debt of $1.2 billion under the Enhanced HIPC Initiative scheme.

The move follows Somalia’s completion of the HIPC Initiative of the IMF after being removed from the international financial system for almost three decades.

Source: Legit.ng