Tinubu tops up Buhari’s domestic borrowing despite dip in foreign loans
By Jeph Ajobaju, Chief Copy Editor
Public debt rose to N87.91 trillion in the third quarter of 2023 (Q3 2023), up on N87.38 trillion in Q2 2023, as disclosed in the Q3 debt report newly released by the Debt Management Office (DMO).
The DMO said total external debt reduced by $1.57 billion, from $43.16 billion in Q2 2023 to $41.59 billion in Q3 2023.
“External debt decreased due to redemption of $500 million Eurobond and the payment of $413.859 as first principal repayment of the $4.3 billion obtained from the International Monetary Fund (IMF) in 2020 during COVID-19,” the DMO explained in a statement, per The Guardian.
The DMO added, however, that total public debt grew from N87.38 trillion in Q2 2023 to N87.91 trillion ($114.35 billion) in Q3 2023 following increase in domestic debt which rose by N1.8 trillion to N50.196 trillion in Q3 2023.
“The amount represents the domestic and external debts of the Federal Government of Nigeria, the 36 state governments and the Federal Capital Territory.
“The servicing of these debts in addition to other debts are clear demonstrations of the FGN’s commitment to honouring its debt obligations.”
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Uproar against rising national debt
Nigerians protest the spate of borrowings by the federal government which has led to a huge rise in debt, especially during the tenure of former President Muhammadu Buhari, and is now copied by the Bola Tinubu administration.
In the 2024 Appropriation Bill before the National Assembly (NASS), the federal government plans to borrow N7.83 trillion as part of measures to bridge the budget deficit of N9.18 trillion.
But Abuja has said it is looking for ways to reduce its dependence on loans and raise internally generated revenue.