SUN 19 DEC, 2021-theGBJournal Recent data published by the Debt Management Office (DMO) showed that Nigeria’s public debt stock increased by 7.2% q/q or NGN2.54 trillion to NGN38.01 trillion in Q3-21 (Q2-21: NGN35.47 trillion).
We highlight that the debt stock increase was primarily due to a 13.6% q/q growth in external debt (NGN15.57 trillion or 41.0% of total public debt as of Q3-21), reflective of the USD4.00 billion Eurobond issued by the FGN in September.
In addition, the domestic debt (NGN22.43 or 59.0% of total public debt as of Q3-21) increased by 3.1% q/q, driven by a 3.4% q/q growth in the FGN’s portion of the domestic debt stock.
We do not see any respite to debt accumulation over the medium term, given our expectation that increased borrowings will be required to plug the rising fiscal deficit. Our prognosis is hinged on continued revenue underperformance relative to the budget and persistent increase in expenditure.
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