Nigeria's Debt Hit N31.009trn In June

 The Debt Management Office (DMO), on Wednesday, disclosed that Nigeria’s total debt stock rose to N31.009 trillion by the end of June 2020.

On the other hand, actual external debt service payment between April and June 2020 amounted to $287,043.07.

According to data released on its website, total public debt stock which comprises the debt stock of the Federal Government, the 36 state governments and the Federal Capital Territory stood at N31.009 trillion or USD85.897 billion.

Of the amount, $31.477 billion was being owed to external creditors.

About $16.360 billion or 35.48 per cent of the external component belonged to multilateral institutions, $3,948.65 or 12.54 per cent was owed to bilateral creditors while the balance of $11,168.35 or 35.48 per cent came from commercial creditors.

The corresponding figures for March 31, 2020, were N28.628 Trillion or USD79.303 Billion.

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 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 was 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,” DMO stated.

The $287,043.07 actual external debt service payment during the second quarter of the year was made up of interest fee, service fee, deferred interest, deferred service, overdue charges indemnity and commitment charges.