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Nigeria’s public debt has been projected to hit a new high before the end of the first quarter of this year, at N150 trillion from N142 trillion as of September 31, 2024....READ THE FULL CONTENT FROM THE SOURCE | READ THE FULL CONTENT FROM THE SOURCE
The new forecast was based on the latest figure of N142 trillion released by the Debt Management Office (DMO).
The naira depreciation causes a rise in debt increase DMO data shows that Nigeria’s public debt rose to N142.3 trillion as of September 30, 2024, an increase of 5.97%. This represents N8.02 trillion compared to N134 trillion in June 2024.
The new debt level shows the combined effects of rising domestic borrowing and the impact of the naira devaluation on external debt in terms of local currency.
Information from the DMO shows that Nigeria’s external debt in dollar terms rose slightly by o.29% from $42.90 billion in June to $43.03 billion in September 2024.
The naira equivalent of external debt skyrocketed heavily by 9.22%, from N63.07 trillion to N68.89 trillion in the same period. The rise was caused by the naira depreciation as the exchange rate weakened from N1,470.19 per dollar in June to N1,601.03 as of September last year.
Expert predicts new debt level for Nigeria Daily Trust quotes an economic expert, Paul Alaje, saying that the debt profile may hit N150 trillion by the end of March this year.
According to Alaje, one of Nigeria’s seven macroeconomic indicators and other parameter projections for the new year is that the country’s debt profile may balloon to N150 trillion by March this year.
This comes, as the Nigerian government, through the DMO, plans to generate N450 billion through its January 2025 bond auction.
The proposed auction includes three bond categories including a five-year bond with a 19.30% coupon rate, which will be issued in April 2029, and the planned N100 billion raise from reopening.
The second one is a seven-year bond issued in February 2031, with an 18.50% coupon rate, via which the government wants to secure N150 billion. The third is issuing a 10-year bond in January 2035, which targets N200 billion. These bonds form a substantial part of the government’s domestic borrowing plans.
The DMO said the auction will take place on Monday, January 27, 2025, and the settlement date will be January 29, 2025.
The settlement ensures that successful bidders take ownership of the bonds immediately after the auction date, allowing them to start earning interest quickly.
The National Bureau of Statistics (NBS_ says that Nigeria’s debt per capita is now about N691.502.
A data review by the national statistics body shows that debt owed by each Nigerian averages N619,000 as of the second quarter of 2024…..READ THE FULL CONTENT FROM THE SOURCE
