Just In: DMO Defends-Nigeria’s Public Debt Profile Amid Rising-Concerns

Just In: DMO Defends-Nigeria’s Public Debt Profile Amid Rising-Concerns

The Debt Management Office (DMO) has defended Nigeria’s public debt profile, asserting that it remains within reasonable limits despite recent increases. Director-General Patience Oniha addressed concerns during a briefing with journalists in Abuja on Tuesday.

Oniha explained that the substantial rise in public debt to ₦121.67 trillion as of March 31, 2024, from ₦97.34 trillion in December 2023, was largely influenced by exchange rate fluctuations and the securitisation of Ways and Means Advances approved by the National Assembly.

She clarified that the debt figure also encompasses interest rates and new borrowings outlined in the 2024 budget, including both domestic and external debts of the thirty-six states and the Federal Capital Territory (FCT).

“The increase of ₦24.33 trillion in the debt stock does not solely reflect new borrowing but includes adjustments due to exchange rate variations,” Oniha emphasized. She highlighted that while the total external debt remained stable at $42.50 billion and $42.12 billion between the fourth quarter of 2023 and the first quarter of 2024, the Naira equivalent saw a significant disparity.

“On a dollar basis, the total debt stock actually decreased to $91.46 billion in the first quarter of 2024, compared to $92.24 billion in the fourth quarter of 2023,” Oniha added, attributing this to exchange rate fluctuations impacting the Naira valuation.

The DMO chief underscored ongoing economic reforms impacting economic indices, stressing that the reported debt figures reflect adjustments in line with prevailing financial conditions.