Nigeria’s Debt to China, World Bank, Others Increases as Naira Loses Value

• Nigeria’s debt profile surged by about N47 trillion in one year, recent checks have shown
• According to the DMO, the total public debt stock had hit N87.91trn ($114.35bn) as of September 30, 2023
• As of November 1, 2024, the dollar exchanged for 1,666.72, according to the Nigerian Autonomous Foreign Exchange Market

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Nigeria's debt profile increased by over N47 trillion in just one year, from N87.4 trillion in September of last year.

The Debt Management Office (DMO) reported that as of September 30, 2023, the total amount of governmental debt was N87.91 trillion ($114.35 billion).

According to the DMO, the sum reflected the federal government's external and domestic obligations as well as those of the 36 states and the Federal Capital Territory (FCT).

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Daily Trust reported that when compared to the June figure of N87.38 trillion, the overall debt stock of N87.91 trillion showed a slight rise of 0.61%.

However, in almost a year, the debt profile increased by N47 trillion, or 54%, to 134.3 trillion by the end of the second quarter of 2024.

Although the third quarter's debt profile has not yet been made public, the devaluation of the naira was a major factor in the increase.

Additionally, the current debt profile is 10.35% greater than the N121.7 trillion ($91.5 billion) that the DMO reported was recorded in the first quarter.

External debt was converted to naira using the Central Bank of Nigeria's (CBN) official exchange rate of $1 to N1,330.26 as of March 2024, when the DMO published the first quarter debt profile.

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The Nigerian Autonomous Foreign Exchange Market (NAFEM) reported that the dollar was worth 1,666.72 on November 1.

External debt makes up 47% of the total, or N63.1 trillion ($42.9 billion), while domestic debt makes up 53%, or N71.2 trillion ($48.4 billion).

Additionally, the nation's debt to GDP ratio is over 50%, raising concerns about the nation's economic stability among stakeholders and experts.

Nigeria successfully repays China, World Bank, others

Legit.ng reported that the latest data from the Central Bank of Nigeria (CBN) reveals that the Nigerian government has spent $2.19 billion to repay foreign debts to countries and financial institutions.

This amount is 90% higher than the $1.12 billion recorded in the same period in 2023.

A breakdown of the data showed that the debt service payments were recorded from January to May 2024.

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng