We Are Oweing N33.107trillion-DMO

Reported By Ernest Omoarelojie

The Debt Management Office, DMO, has said on Wednesday that Nigeria’s total public debt stock as at March 31, 2021 stands at N33.107t or USD87.239b. The agency, which explained that the debt is made up of N20.636t domestic debt representing 62.33%, and and N12.470t 37.67% external obligations, added that the total debt stock also includes the N940.220b Promissory Notes issued to settle the inherited arrears of the federal government to state governments, oil marketing companies, exporters and local contractors.
A breakdown of the total debts indicates that whereas the federal government is obligated to the tune of N16.513 trillion, states and the FCT owed N 4.122t.
“Compared to the total public debt stock of N32.916 trillion as at December 31, 2020, the increase in the debt stock was marginal at 0.58%,” the agency said.
A further breakdown of the debt stock indicates that the recent rise in the debt stock is in the domestic debt sector which rose from N20.21t in December 2020 to N20.637t as at March 31, 2021.
The increase is said to emanate mainly from federal government bonds, Nigerian treasury bills, Nigerian treasury (Sukuk and Green) bonds deployed in financing infrastructure and other capital projects. It also includes the N940.220 billion Promissory Notes.
There is a decline on external debt stock over the period under review. Whereas it stood at $33.348b in December 31, 2020, it now stands at $32.86b about N12.470t due in the main to the Redemption of about $500m Euro bond in January 2021 by the federal government.
Further details about the debt stock of N16.513t showed that whereas the federal government bonds stood at N12.465t representing 75.48% of total debts, treasury bills stood at N2.604 trillion representing 15.77%. The country’s treasury bonds was N100b or 0. 61%.
FGN Savings Bond was N14.394 billion which represented 0.09 per cent.
FGN Sukuk was N 362. 557 billion, representing 2.20 per cent; while Green Bond was N25.690 billion or 0.16 per cent. Promisory Notes, 940,220,353,590.00 which are non-interest notes issued to settle the arrears of the federal government to local contractors, accounted for 5. 69%.
DMO disclosed that N612.712b was committed in the first quarter of 2021 for debt servicing with N219. 289b, N123.093b and N270.328b were paid in January, February and March respectively.

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