Finance Nigeria’s debt stock skyrockets, hits $6.66 billion

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Can Nigeria really do without borrowing?

Ms Patience Oniha, the Director General of Nigeria's Debt Management Office. play

Ms Patience Oniha, the Director General of Nigeria's Debt Management Office.

(The Whistler)
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Nigeria's total has been put at $6.66 billion (N20.37 trillion) as at September 30, 2016, by the Debt Management Office (DMO) of Nigeria.

In a statement released by DMO on Tuesday, November 14, 2017, the total public debt stock belongs to the Federal Government, the entire 36 states and the Federal Capital Territory.

The figure also shows that there is a 3.6% increase in the indebtedness of the country. As at  June 30, 2017, the country's debt was estimated at N19.64tn.

Also Read: Reasons Nigeria cannot stop borrowing, even as debt hits $6.66 billion and increasing

With a close examination of the total debt stock, it is seen that external debt accounts for N4.69 trillion (23.04 percent). The domestic debt was put at  N15.03 trillion (76.96 percent) of the debt.

The debt office also hinted that the Federal Government has adopted a strategy to further reduce the cost of borrowing to the country. Hence, it is concentrating on raising more external debts.

A $5.5bn Euro bond has been planned to be raised before the end of the year.

According to the DMO, this strategy is hoped to help contribute to attaining the target ratio of 60:40 between domestic and external debt.