Nigeria’s total public debt rose by N2.54 trillion, from N35.465 trillion at the end of the second quarter of 2021, to N38.005 trillion ($92.626 billion) at the end of the third quarter.
Statistics released by the Debt Management Office (DMO) indicated that the debt comprised total external and domestic debts of the federal government, 36 state governments, and the Federal Capital Territory (FCT).
The DMO explained that the increase of N2.540 trillion, when compared to the corresponding figure of N35.465 trillion at the end of Q2 2021, largely accounted for by the $4 billion Eurobonds issued by the federal government in September.
The debt management agency stated that the issuance of the $4 billion Eurobonds brought significant benefits to the economy by increasing the level of Nigeria’s external reserves, thereby supporting the exchange rate of the naira, and providing necessary capital to enable the federal government finance various projects in the budget.
The triple-tranche $4 billion Eurobond, issued in September, was for the implementation of the New External Borrowing of $6.18 billion in the 2021 Appropriation Act.
Meanwhile, Director General of the DMO, Patience Oniha, yesterday said the federal government would reduce local borrowing next year, with the expectation of increased internal revenue. Oniha also disclosed that in 2021, the federal government borrowed a total of N5.134 trillion from the local debt market and targeted borrowing for 2022 was N4.6 trillion.
