From N54.1trn: Nigeria’s Debt Rises Under Tinubu as FG Successfully Repays World Bank, Others

• The federal government has spent $1.36 billion in the first half of 2024 to pay off outstanding debts to 12 international and multilateral creditors
• Payments made between January and June 2024 were $431.23 million, which is 216.07% more than the same period in 2023
• The DMO's 2024 half-year public debt report states that Nigeria's international and domestic governmental debts rose to N71.2 trillion

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

In the first half of 2024, the federal government spent $1.36 billion to pay off outstanding obligations to 12 international and multilateral creditors.

This is based on data from the Debt Management Office (DMO) publicly available reports.

The amount paid from January to June 2024 is 216.07% higher than the $431.23 million recorded during the same period in 2023.

However, the Punch noted that the increase was mostly caused by a dramatic spike in interest rates, which had a major effect on borrowing costs and increased government spending.

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The notable increase in the federal and state governments' debt service obligations demonstrates the growing strain on Nigeria's fiscal balance due to persistent economic difficulties.

The International Development Association, Africa Growing Together Fund, Islamic Development Fund, International Monetary Fund, Africa Development Bank, European Development Bank, International Fund for Agriculture Development, African Development Fund, and International Bank for Reconstruction and Development are among the multilateral organizations.

Among the bilateral companies are the Agency Francaise Development, Kreditantstalt für Weideraufbua, and the Japan International Cooperation Agency.

According to the DMO's 2024 half-year public debt report, Nigeria's domestic and international public debt increased to N71.2 trillion and $42.9 billion, respectively.

This represents a significant increase over December 2023, when domestic debt was N59.1 trillion and foreign debt was $42.4 billion, representing increases of 20.4% and 1.1%, respectively.

Under President Bola Tinubu's leadership, domestic debt has increased dramatically, rising from N54.1 trillion in June 2023 to N71.2 trillion.

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Sovereign debt servicing dips

Legit.ng earlier reported that in response to the recent decline in sovereign debt servicing from 97% to 65% of government revenue, Tinubu said the change indicated the country's economic recovery.

During Monday's swearing-in ceremony for seven new ministers in Abuja, Tinubu declared war on looters and promised to take smart measures to protect the country's wealth from theft.

He also emphasized the vital role these leaders will play in helping Nigeria navigate its economic difficulties, highlighting the significance of their commitment and foresight during this crucial time.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng