Debt Management Office on Wednesday put the country’s entire debt at N31trn, indicating an increase of N2.38trn within a space of three months.
This was Nigeria’s total public debt stock as of June 30, 2020 and it includes the debt stock of the Federal Government, the 36 states, and the Federal Capital Territory.
Just as the country’s public debt stock, the DMO also released reports on Nigeria’s Actual External Debt Service Payments in Second Quarter, 2020, as well as Nigeria’s External Debt Stock as of June 30, 2020.
DMO said that the increase in the debt stock was due to the $3.6 billion budget support loan from the International Monetary Fund, new domestic borrowing to finance the revised 2020 appropriation act, including the issuance of the N162.557 billion Sukuk, and promissory notes issued to settle claims of exporters.
It said, “The DMO expects the public debt stock to grow as the balance of the new domestic borrowing is raised and expected disbursements are made by the World Bank, African Development Bank and the Islamic Development Bank which were arranged to finance the 2020 budget.
“It will be recalled that the 2020 Appropriation Act had to be revised in the face of the adverse and severe impact of COVID-19 on government’s revenues and increased expenditure needs on health and economic stimulus amongst others.
“Additional promissory notes are expected to be issued in the course of the year, this, and new borrowings by state governments are also expected to increase the public debt stock.”
After reviewing the 2020 budget as a result of the COVID-19 pandemic, the Federal Government requested for loans worth $6.9 billion from the World Bank, International Monetary Fund and African Development Bank.