According to an analysis of Federal Account Allocation Committee (FAAC) data from the National Bureau of Statistics (NBS), total external debt service payments for January to April 2024 reached N96.52 billion, a substantial rise from N43.31 billion in the corresponding period of the previous year.
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The significant price hikes in essential commodities such as rice, bread, sugar, garri, beef, and eggs have notably strained household budgets, making it increasingly difficult for many families to afford three meals a day.
As of December 2023, Nigeria’s total gross domestic product (GDP) was N229.9 trillion in nominal terms, though it grew by only 2.74% in real terms. This suggests that the country’s debt-to-GDP ratio is now above 50% for the first time.
Since man became aware of himself and realised that whether by mutual arrangement or contrived by nature, there are always leaders and followers, communities fashioned out ways and means in which to live together under organised systems to regulate and conduct their affairs.
Amid concerns over rising debts service costs, states have been working to decrease their debts stock. In Q1 2024, states’ total domestic debts dropped by 31% from N5.86 trillion in Q4 2023 to N4.07 trillion and by 26% from N5.48 trillion in Q1 2023.
Nigeria’s public debt stock increased from N97.34 trillion (108.23 billion dollars) in the fourth quarter of 2023 to N121.67 trillion (91.46 billion dollars) in the first quarter of 2024.
“Tighter monetary conditions are pushing government interest rates for local currency borrowing to higher levels, from an average of 12.8% in 2023 to 19.7% between January and May 2024. As the government is predominantly borrowing in domestic markets, this will have a significant impact on interest spending, which we expect will increase by 1 percentage of GDP in 2024 and consume 36% of government revenue.”
The Chinese government has promised to increase imports of agricultural products from Nigeria following the country’s exports valued at N572 billion to Asia.
Non-governmental organisations are supposed to be interventionist bodies that are formed to improve the quality of life for people through various means, some of which are one or more out of the provision of necessities such as food, clothing, improvement of educational and healthcare infrastructure and provision of materials, training and many more that would improve the quality of life and enhance employment opportunities.
According to the latest data published by the Central Bank of Nigeria (CBN), the reserves now stand at $33.58 billion as of June 19, 2024.