Nigeria’s Debt Rises 8.3% to N31trn in 3 Months – DMO

The Debt Management Office (DMO), Wednesday, put the nation’s total
public debt stock at N31.009 trillion or $85.897 billion, as at June
31, 2020, representing 8.3 percent rise from N28.628 trillion in March
2020.

The figure comprised the debt stock of the federal government, the 36
state governments and the Federal Capital Territory (FCT).

The DMO, in a report yesterday, explained that, “The increase in the
Debt Stock by N2.381 Trillion or USD6.593 billion was accounted for by
the USD3.36 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.”

The DMO also said that the figure could rise further when the balance
of the new borrowing is raised for the implementation of the current
budget.

It stated: “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.

“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.”

The federal government announced, earlier in the week, that it lost 60
per cent of its expected revenue to the COVID-19 pandemic which
adversely impacted the global economy and at a point pushed oil prices
into the negative zone, thereby forcing it to take more loans.

Nigeria’s Oil cargoes were on the international waters without buyers
for weeks, at the peak of the pandemic when most nations were on
lockdown. Crude prices crashed, thereafter, and have remained low,
since then.