The Debt Management Office (DMO), has disclosed that federal government and 36 states debt profile hit N31trillion as at June 30, 2020.
DMO in its latest report on Nigeria’s debt profile said the 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 $85.897 Billion.
DMO explained that the corresponding figures for March 31, 2020 were N28.628 trillion or $79.303 billion.
The increase in the Debt Stock by N2.381 trillion or $6.593 Billion was accounted for by the $3.36 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.
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.