Lagos, Rivers Lead As Public Debt Climbs To N33.1tn

Nigeria’s total public debt had a 0.58 per cent marginal
increase from N32.916 trillion as of December 31, 2020 to N33.1
trillion ($87.239 billion by March 31, 2021, latest figures from
the Debt Management Office (DMO) have revealed.

The total public debt comprises the debt stock of the Federal
Government of Nigeria (FGN), the 36 state governments and the
Federal Capital Territory (FCT).

Lagos State led other states with a total debt of N507.377
billion; followed by Rivers, N266.936 billion; Akwa Ibom, N232
billion; and Delta, N213.982 billion.

As of December 31, 2020, the three states were also the most
indebted in the country.

The breakdown shows that the external debt component of the
aggregate debt of $87.239 billion stood at $32,859 billion while
the domestic component is $54,380 billion.

The external debt is made up of $17,830.05 billion owed to
multilateral creditors, including the World Bank Group, African
Development Bank Group, European Development Fund, Arab Bank for
Economic Development in Africa, Islamic Development Bank, and the
International Fund for Agricultural Development.

Bilateral debts accounted for $4.182 billion while commercial
debts stood at $10.388 billion, comprising Eurobonds and Diaspora
Bond.

FGN’s domestic debt component during the review period stood at
N16.513 trillion (N16,513,929,181,182.00).

This includes Nigerian Treasury Bill (NTB), Nigerian Treasury
Bonds, FGN Savings Bond, FGN Sukuk, Green Bond and Promissory
Notes.

The 36 states and the Federal Capital Territory (FCT) accounted
for N4.122 trillion (N4,122,951,837,267.70) of the total domestic
debt.

The DMO explained: “The debt stock also includes Promissory
Notes in the sum of N940.220 billion issued to settle the inherited
arrears of the FGN to state governments, oil marketing companies,
exporters and local contractors.

But when compared to the total public debt stock of N32.916
trillion as of December 31, 2020, the increase in the debt stock
was marginal at 0.58 per cent.

“Further analysis of the public debt stock showed that the
increase was in the domestic debt stock which grew by 2.11 per cent
from N20.21 trillion in December 2020 to N20.637 trillion as at
March 31, 2021.

“The FGN’s share of the domestic debt includes FGN Bonds, Sukuk
and Green Bonds used to finance infrastructure and other capital
projects as well as the N940.220 billion Promissory Notes.

“External debt stock declined from USD33.348 billion as at
December 31, 2020, to USD32.86 billion due to the redemption by
Nigeria of the USD500 million Eurobond in January 2021.

Nigeria’s total public debt had a 0.58 per cent marginal
increase from N32.916 trillion as of December 31, 2020 to N33.1
trillion ($87.239 billion by March 31, 2021, latest figures from
the Debt Management Office (DMO) have revealed.

The total public debt comprises the debt stock of the Federal
Government of Nigeria (FGN), the 36 state governments and the
Federal Capital Territory (FCT).

Lagos State led other states with a total debt of N507.377
billion; followed by Rivers, N266.936 billion; Akwa Ibom, N232
billion; and Delta, N213.982 billion.

As of December 31, 2020, the three states were also the most
indebted in the country.

The breakdown shows that the external debt component of the
aggregate debt of $87.239 billion stood at $32,859 billion while
the domestic component is $54,380 billion.

The external debt is made up of $17,830.05 billion owed to
multilateral creditors, including the World Bank Group, African
Development Bank Group, European Development Fund, Arab Bank for
Economic Development in Africa, Islamic Development Bank, and the
International Fund for Agricultural Development.

Bilateral debts accounted for $4.182 billion while commercial
debts stood at $10.388 billion, comprising Eurobonds and Diaspora
Bond.

FGN’s domestic debt component during the review period stood at
N16.513 trillion (N16,513,929,181,182.00).

This includes Nigerian Treasury Bill (NTB), Nigerian Treasury
Bonds, FGN Savings Bond, FGN Sukuk, Green Bond and Promissory
Notes.

The 36 states and the Federal Capital Territory (FCT) accounted
for N4.122 trillion (N4,122,951,837,267.70) of the total domestic
debt.

The DMO explained: “The debt stock also includes Promissory
Notes in the sum of N940.220 billion issued to settle the inherited
arrears of the FGN to state governments, oil marketing companies,
exporters and local contractors.

But when compared to the total public debt stock of N32.916
trillion as of December 31, 2020, the increase in the debt stock
was marginal at 0.58 per cent.

“Further analysis of the public debt stock showed that the
increase was in the domestic debt stock which grew by 2.11 per cent
from N20.21 trillion in December 2020 to N20.637 trillion as at
March 31, 2021.

“The FGN’s share of the domestic debt includes FGN Bonds, Sukuk
and Green Bonds used to finance infrastructure and other capital
projects as well as the N940.220 billion Promissory Notes.

“External debt stock declined from USD33.348 billion as at
December 31, 2020, to USD32.86 billion due to the redemption by
Nigeria of the USD500 million Eurobond in January 2021.