By Joke Kujenya
FURTHER INSIGHTS have been provided on Nigeria’s public debt which surged from N97.34 trillion in December 2023 to N121.67 trillion in March 2024 as elucidated by Patience Oniha, the Director-General of the Debt Management Office (DMO).
Speaking on the need to shed more light and attributing this increase largely to exchange rate fluctuations and specific fiscal measures, the DMO DG, Oniha explained the latest debt figures, addressing public concerns and misconceptions.
She said a significant portion of the N24.33 trillion rise was linked to the securitization of N4.90 trillion of the N7.3 trillion Ways and Means Advances, which had been approved by the National Assembly, and this move, along with new borrowing of N2.81 trillion included in the 2024 budget, contributed to the increased debt.
Highlighting the debt components, Oniha emphasized that the total debt included both domestic and external obligations of the thirty-six states and the Federal Capital Territory (FCT) as she pointed out that Nigeria’s recent economic reforms, impacting exchange rates and interest rates, played a crucial role in altering the debt profile.
The increase, she explained, was not solely due to new borrowing.
For instance, while the external debt stock remained relatively stable at $42.50 billion and $42.12 billion between the last quarter of 2023 and the first quarter of 2024, the Naira equivalent saw a significant rise from N38.22 trillion to N56.02 trillion.
This exchange rate disparity accounted for a substantial part of the perceived increase in debt.
In dollar terms, Nigeria’s total debt stock actually showed a decline in the first quarter of 2024 to $91.46 billion, underscoring the impact of exchange rate changes on the debt figures in Naira terms.
Oniha noted that if the foreign exchange impact were discounted, Nigeria’s debt remains moderate and within normal limits.
Reflecting on the broader fiscal landscape, Oniha described the current debt report as an improvement compared to previous administrations, attributing the progress to better management and clearer financial policies under the current government.
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