Nigeria’s debt stock rises to $93 billion, as House approves President’s request for additional $5.8 billion loan, $10 million grant

The total debt stock rose by N2.540 trillion in three months from June 30, end of second quarter, to September 30, 2021.

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Nigeria’s total public debt stock as of September, third quarter of 2021, is N38.005 trillion, the Debt Management Office, DMO, has revealed.

Nigeria’s total public debt stock as of September, third quarter of 2021, is N38.005 trillion, the Debt Management Office, DMO, has revealed.

A media statement published on the DMO’s website, yesterday, read: “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, 36 state governments and the Federal Capital Territory, shows that Nigeria’s public debt was N38.005 trillion or $92.626 billion at the end of Q3,2021.”

The total debt stock rose by N2.540 trillion in three months from June 30, end of second quarter, to September 30, 2021.

The statement read in part: “The increase of N2.540 trillion when compared to the corresponding figure of N35.465 trillion at the end of Q2 2021 was largely accounted for by the $4 billion Eurobonds issued by the government in September 2021.”

The statement added: “The issuance of the $4 billion Eurobonds has brought significant benefits to the economy by increasing the level of Nigeria’s external reserves, thereby supporting the naira exchange rate and providing the necessary capital to enable the Federal Government finance various projects in the budget.”

The office further clarified that the triple tranche $4 billion Eurobond, issued in September 2021, was for the implementation of the new external borrowing of $6.18 billion in the 2021 Appropriation Act.

To add to the debt stock, the House of Representatives has approved President Muhammadu Buhari’s loan request of $5.8 billion and grant of $10 million. The loans are to be sourced from the World Bank, Islamic Development Bank, China Exim Bank, Chinese Africa Development Fund, and International Fund for Agricultural Development (IFAD).

At the time of approval, the House was yet to know the terms and conditions of the loan from the funding agencies.

Ahmed Safana (APC-Katsina), who is the chairman, House Committee on Aids, Loans and Debt Management had observed that the total borrowing of $5.8 billion covers $2.3 billion for the Grid Modernisation and Expansion Programme, $290 million for the malaria project, $700 million for the Sustainable Water Supply, Sanitation and Hygiene (WASH) Project, $786,382,967 for the Gurara Phase II project, among several others.

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