Nigeria’s total debt stock down 15% in dollar terms

Nigeria’s total debt stock in United States dollar terms fell by 15 per cent in the first quarter of the year, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said.

Mr Edun explained that the positive development is significant for the country, especially in the eyes of rating agencies, creditors, and investors.

“The debt stock, the total debt stock of Nigeria in US dollar terms, fell by 15 per cent. That is very positive; any rating agency, creditor, and investor looking at that will see it as a positive move.

“We’re a country with petro-dollars and the ability to earn in dollars. So, it’s highly relevant that we look at our exposure in dollar terms,” he said.

According to data released by the Debt Management Office, Nigeria’s public debt stock rose from N97.34 trillion in December 2023 to N121.67 trillion in March.

However, the Director-General of the DMO, Patience Oniha, explained that the increase in the figure was partly due to exchange rate fluctuations.

In US dollars, the figure fell from $108.2 in December 2023 to $91.4 in March.

On Tuesday, Mr Edun attributed the discrepancy in debt figures primarily to exchange rate fluctuations, noting that despite 8 trillion Naira increase in actual debt issuance, the overall debt stock in Naira terms rose by 25 per cent.

Mr Edun emphasised the importance of the government’s capacity to manage its debt responsibly, adding that under President Bola Tinubu, the federal government has not relied on the Central Bank’s ways and means advances to fund its obligations.

“At no time have we gone to Mr President and requested permission to seek funding from the Central Bank to pay anybody, be it external debt service, share capital cash calls, or any other liabilities,” he said.

He also outlined the government’s efforts to enhance revenue collection and control expenditure through robust use of technology, avoiding the inefficiencies associated with manual processes.

According to him, these measures have led to a significant improvement in revenue efforts.

Regarding the legacy debt, Mr Edun disclosed that President Tinubu inherited a N22.7 trillion liability in outstanding ways and means advances, which had been securitised just before the administration took office.

He assured that a forensic audit is underway to scrutinise this figure, with the current ways and means deficit standing at N3.4 trillion.

He said the government’s financial strategies are yielding positive results.

“We are actually positive. The amount owed and that we are claiming far exceeds the N3.4 trillion in ways and means. We do not rely on ways and means to pay salaries, external debt servicing, or other obligations,” he noted.