Business & Economy - News - September 20, 2022

Nigeria’s foreign debt climbs by 288.6% in 7 years under Buhari, DMO data shows

Says domestic debt rose by over 149.4% over the same period

By Bassey Udo

From a total of about $10.32 billion as of June 30, 2015, Nigeria’s total foreign debt stock under President Muhammadu Buhari administration has climbed by about 288.6 percent to about $40.1 billion, latest data by the Debt Management Office (DMO) have shown.

Similarly, domestic debt, which stood at about N8.40 trillion as of June 30, 2015 equally jumped by over 149.4 percent over the last seven years to about N20.95 trillion under the present administration.

The data were contained in the latest profile of the country’s debt stock published by the debt management agency for the end of the second quarter of 2022.

The debt management agency said in its latest report on the FGN Domestic Debt Stock as of June 30, 2022 grew from a total of about N20.144 trillion recorded at the end of the first quarter on March 31, 2022.

Details of the country’s domestic debt profile, the DMO said, showed FGN Bonds, which stood at about N5.37trillion, or 63.13 percent as of March 31, 2015, grew to about N15.19 trillion, accounting for 72.53 percent of the total debt as at June 30, 2022.

Nigerian Treasury Bills, which stood at N2.87 trillion, or 33.68 percent in 2015 rose to N4.5 trillion, or 21.50 percent, while Nigerian Treasury Bonds debt, which stood at about N271.22billion, or 3.19 percent, declined to about N75.99 billion, or 0.36 percent of the total debt stock as of June 30, 2022.

Other components of the latest debt stock, the DMO said, included FGN Sukuk (N612.56 billion) or 2.92 percent; Promissory Notes (N514.94 billion) or 2.46 percent; Green Bond (N25.69 billion) or 0.12 percent, and FGN Savings Bond (N20.87 billion) or 0.10 percent.


In terms of the foreign debt stock, the DMO said out of a total of $40.1 billion, the Federal Government accounted for $35.50 billion, while the 36 states and the Federal Capital Territory accounted for $4.56 billion.

From the data published by the DMO, the multilateral debt of $19.16 billion accounted for about 47.82 percent of the total debt, while commercial debt as a result of Eurobonds and Diaspora Bonds stood at $15.62 billion, accounted for 38.98 percent of the debt, and bilateral debt ($4.7 billion), or 11.73 percent, and Promissory Notes ($588.19 million), or 1.47 percent.

A breakdown of the multilateral debts included those to the International Monetary Fund (IMF) and affiliate financial institutions to both the World Bank Group and the African Development Bank.

While the debt to the IMF stood at about $3.3 billion, debts to affiliates of the World Bank Group included the International Development Association (IDA) $12.57 billion and International Bank for Reconstruction and Development (IBRD) $486 million.

Debts to affiliates of the AFDB Group included African Development Bank $1.55 billion; Africa Growing Together Fund $5.02 million; African Development Fund $955.18 million; Arab Bank for Economic Development in Africa $5.70 million; European Development Fund $39.35 million; Islamic Development Bank $43.69 million, and International Fund for Agricultural Development $229.40 million.

Total bilateral debt, the DMO said, included China (Exim Bank of China) $3.93 billion; France (Agence Francaise Development) $526.57 million; Japan (Japan International Cooperation Agency) $60.65 million; India (Exim Bank of India) $31.50 million, and Germany (Kreditanstalt Fur Wiederaufbua) $153.77 million.

In terms of external debt service payments, the debt management agency said between April and June, 2022, a total of $105.23 billion, or 18 percent was paid to service the debts owed to various multilateral financial organizations, while $35.71 billion, or 6 percent was spent on servicing bilateral debts during the same period, and $457.01 billion, or 76 percent spent on Eurobonds.

Out of a total of N5.28 trillion recorded as domestic debt figure for the 36 States of the Federation and the Federal Capital Territory as of June 30, 2022, the DMO said Lagos State trumped with the highest debt stock of N797.31 billion, followed by Delta State with N378.88 billion, and Ogun State with N241.78 billion. The least indebted states include Jigawa (N45.14 billion), Ebonyi (N59.11 billion) and Kebbi (N60.42 billion).

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