Economy - Latest News - September 9, 2020

Nigeria debt now N31trillion ($85.90bn), and rising

Further loans increasing debt burden

*Loans from World Bank, ADB, Islamic Bank raise debt profile

Nigeria’s total public debt now stands at N31trillion naira.

This was revealed by the Debt Management Office on Wednesday.

Figures released by DMO on Wednesday showed that the nation’s debt jumped N2.38trn within a period of three months to June 2020

The figure comprises of Federal Government, the 36 states, and the Federal Capital Territory’s debt.

DMO also revealed Nigeria’s Actual External Debt Service Payments in Second Quarter, 2020, as well as Nigeria’s External Debt Stock as of June 30, 2020.

“The data shows that in naira terms, the total public debt stock which comprises the debt stock of the Federal Government, the 36 state governments and the FCT stood at N31.009trn or $85.897bn.

“The corresponding figures for March 31, 2020, were N28.628trn or $79.303bn.”

“The DMO expects the public debt stock to grow as the balance of the new domestic borrowing is raised and expected disbursements are made by the World Bank, African Development Bank and the Islamic Development Bank which were arranged to finance the 2020 Budget.

“Recall that the 2020 Appropriation Act had to be revised in the face of the adverse and severe impact of COVID-19 on government’s revenues and increased expenditure needs on health and economic stimulus, among others.”

The debt office explained that the increase in the debt stock by N2.381trn or $6.593bn was accounted for by the $3.36bn budget support loan from the International Monetary Fund, new domestic borrowing to finance the revised 2020 Appropriation Act

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