New Telegraph

Nigeria’s total debt stock rises to N32.223trn

The Debt Management Office (DMO) has put Nigeria’s total public debt stock as at September 2020 at N32.223 trillion ($84.574 billion). The borrowing by various tiers of governments to contain COVID-19 pandemic increased debt stock, according to DMO.

The new figure confirmed by debt agency, yesterday, was higher to debt stock figure of N31.01 trillion as of 30th June 2020. The debt stock is made up of the domestic and external debt stocks of the Federal Government of Nigeria (FGN), the 36 state governments and the Federal Capital Territory (FCT).

The breakdown of the public debt stock showed that 37.82% was external, while the balance of 62.18% was domestic. Compared to the total public debt stock of N31.009 trillion as at June 30, 2020, the debt stock in Q3 2020 increased by N1.214 trillion or 3.91%. DMO said both the Federal Government, state governments and the FCT recorded increases in their debt stock due to borrowings to enable them respond appropriately to the COVID-19 pandemic and to meet revenue shortfalls. Issuance of Promissory Notes by the FGN to settle inherited liabilities have also contributed to the growth in the Public Debt Stock since 2018 when they were first issued.

While N20.136 billion of Promissory Notes were issued in Q3 2020, as at September 30, 2020, the Promissory Notes Outstanding, which are all included in the Domestic Debt Stock, stood at N971.878 billion. President Muhammadu Buhari, while signing 2021 Appropriation Bill of N13.588 trillion into law yesterday, assured that “being a deficit budget, the specific borrowing plan will be forwarded to the National Assembly shortly.”

He sought for co-operation of the National Assembly for a quick consideration and approval of the plan when submitted. He assured members of the National Assembly that all borrowings will be judiciously applied towards growth-enhancing critical expenditures.

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