Nigeria’s debt profile hits N32tr –NBS
National Bureau of Statistics (NBS), yesterday, said that Nigeria’s total debt stock as at September 2020 stood at N32.22 trillion.
While N12.19 trillion or 37.82 per cent of the debt portfolio was external, N20.04 trillion or 62.18 per cent of the debt was domestic.
Further disaggregation of Nigeria’s foreign debt showed that $16.74 billion of the debt was multilateral; $502.38 million bilateral (AFD) and another $3.26 billion bilateral from the Exim Bank of China, JICA, India, and KFW while $11.17 billion was commercial which are Eurobonds and Diaspora Bonds.
Corroborating this figure, Debt Management Office (DMO), also confirmed in its publication that Nigeria’s debt stock stands at N32.223 trillion or $84.574 billion.
According to DMO, the debt stock is made up of domestic and external debt stocks of the Federal Government of Nigeria (FGN), the 36 state governments and the Federal Capital Territory (FCT). In the breakdown of the public debt stock, DMO said that 37.82 per cent was external, while the balance of 62.18 per cent 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 per cent. The FGN, state governments and the FCT all 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, DMO, said, 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.
In view of Nigeria’s decrepit economic environment and China’s expansionist plan into every facet of Nigeria’s economy, it may be pretty difficult for Nigeria to extricate itself from China’s stranglehold.