Worrying signals emanated from the Debt Management Office, DMO earlier today as it emerges that the country spent $1.69 billion (N609.13 billion) to service its domestic debt in the first quarter of 2020 alone.
This is even as Africa’s largest economy’s total public debt rose to a whopping $79.5 billion, N28.63 trillion as of the first quarter of 2020, which is March 31, 2020. This represents a 15% increase from the figure that was recorded for the corresponding period in 2019, which was about $69.09 billion, N24.94 trillion.
According to data obtained from DMO, $27.66 billion (N9.9 trillion) is the total external debt. This represents 34.89% of the total public debt stock. Whereas, $51.64 billion (N18.64 trillion) is the total domestic debt, which represents 65.11% of the total public debt.
The Federal Government accounts for 50.77% of the total domestic debt, which is $40.26 billion (N14.53 trillion), whereas the State Governments and Federal Capital Territory account for 14.34% of the total domestic borrowing which is $11.37 billion (N4.11 trillion).
Recall that the oil sector accounts for about 90% of Nigeria’s foreign exchange earnings and about 60% of its total revenue. The country has been under a lot of fiscal crisis following the crash of oil prices triggered by the coronavirus pandemic.
Recall also that global rating agency, Fitch Ratings had raised an alarm that the country’s debt to revenue ration is set to deteriorate further to 538% by the end of 2020, from the 348% that it was a year earlier.
