A report from the Debt Management Office, DMO, has revealed that the nation’s total public debt now stands at N31.009 trillion (or $85.897 billion) as at June 31, 2020.
The debt, which represents 8.3 percent rise from N28.628 trillion in March 2020, is comprised of federal government debt stock as well as the 36 state governments and the Federal Capital Territory, FCT.
“The increase in the Debt Stock by N2.381 trillion or $6.593 billion was accounted for by the $3.36 billion Budget Support Loan from the International Monetary Fund, 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,” the report reads in parts.
According to the DMO, the figure could rise when the balance of the new borrowing is raised for the implementation of the current budget.
“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 2020 Appropriation Act had to be revised in the face of the adverse and severe impact of COVID-19 on Government’s Revenues and increased expenditure needs on health and economic stimulus amongst others.
“Additional Promissory Notes are expected to be issued in the course of the year, this, and new borrowings by State Governments are also expected to increase the Public Debt Stock,” the report further reads.
