Nigeria External Debt Stock Falls 0.81% By Sept To $26.94 Bln ~DMO
Nigeria’s total outstanding external debt stock fell marginally by 0.81 percent to $26.94 billion in the third quarter of last year from $27.16 billion in the second quarter of 2019, data from the Debt office showed on Tuesday.
However, the Debt Management Office (DMO) showed that total domestic debt stock grew by 3.65 percent to N13.90 trillion naira in the third quarter of last year.
Equally, the amount paid by the government to service its domestic debt rose by 224.81 percent in the third quarter of last year compared with the amount spent on debt servicing in the second quarter.
For instance, Nigeria spent N606.86 billion to service its domestic debt in the third quarter against N186.83 billion spent in the previous quarter.
The breakdown of the country’s external debt showed that there was a slight fall in the amount outstanding to the multilateral institutions in the third quarter of 2019. Outstanding debt to the multilateral institutions stood at $12.34 billion as of Sept. compared with $$12.71 billion in the second quarter.
Nigeria currently owed $10.86 billion in Eurobond, $300 million in diaspora bond as of September 2019.
Nigeria plans to reenter the international debt market this year to borrow part of the deficits for the 2020 budget, according to the head of the DMO Patience Oniha.
Oniha in a presentation last week said the country is in talks with concessionary lenders about the N850 billion in external borrowings as projected in the 2020 budget.
In the 2020 budget, Nigeria projected deficits of N2.18 trillion, which it intends to fund through borrowing from external and domestic sources.
Many analysts have expressed concerns about the rising debt and increasing cost of debt service by the country as the country economic manager continue to miss revenue target yearly.
Nigeria currently spent around 54 percent of its revenue earnings on debt servicing, leaving little for developmental purposes.