Last month, the Federal Government announced a cost-reflective tariff for the Nigerian Electricity Supply Industry(NESI) and the removal of fuel subsidy in a bid to obtain a $3 billion loan from the World Bank.
In a press release by the Debt Management Office(DMO), Nigeria’s debt profile stood at N31.009 trillion on June 31, 2020, against N28.628 trillion recorded on March 31, 2020.
The $3.36 billion Budget Support Loan from the International Monetary Fund (IMF), 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 accounts for the N2.381 trillion increase of debts.
The breakdown shows that total external debt stood at N11.36 trillion ($31.47 billion), accounting for 36.65% of the total debt stock, while domestic debt represented 63.35% of the total debt. Domestic debts stood at N19.65 trillion ($54.42 billion).
Nigeria’s total public debt increased by $22.09 billion between June 2015 and June 2020. It translates to an additional loan of N8.39 trillion within 5 years of the current administration when multiplied by the current exchange rate of N380/$1.
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,” the report explained.