Nigeria spent N2.46 trillion to service N121.67 trillion ($91.46 billion) of public debt in the first quarter of 2024 (Q1 ’24), according to the Debt Management Office (DMO).
The DMO revealed that the N2.46 trillion spent on debt servicing comprises N1.47 trillion for foreign debt service payments ($1.12 billion converted using the Nigerian autonomous foreign exchange market rate for March ending at N1,309.36) and N989.24 billion for domestic debt service payments.
The public debt stock consists of an external debt of N56.02 trillion ($42.12 billion) and a domestic debt of N65.65 trillion ($46.29 billion).
DMO noted that the public debt for Q1’24 comprises an external debt of N56.02 trillion ($42.12 billion) and a domestic debt of N65.65 trillion ($46.29 billion).
It stated that the domestic debt for the 36 states and the Federal Capital Territory stood at N4.07 trillion in Q1 2024.
“Excluding naira exchange rate movements in Q1’24, only the domestic debt component of Total Public Debt grew from N59.12 trillion on December 31, 2023, to N65.65 trillion on March 31, 2024,” it added.
According to DMO, the increase was from new borrowing to part-finance the 2024 budget deficit and securitisation of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria (CBN).
“Whilst borrowing, as provided in the 2024 Appropriation Act, will continue, we expect improvements in the government’s revenue to enhance debt sustainability.”
