The Debt Management Office, DMO, says the federal government borrowed close to N8 trillion in the first quarter of 2023.
The clarification comes of the heels of reports that the Tinubu administration has borrowed over N24 trillion between January and March this year.
In a statement a statement on Wednesday, titled, “Explaining the Q1 2024 Public Debt Data,” the DMO said the debt include the N2.81 trillion as part of the new domestic borrowing of N6.06 trillion provided in the 2024 Appropriation Act and N4.90 trillion as part of the securitization of the N7.3 trillion Ways and Means, W&M, Advances approved by the National Assembly.
The agency stated that the N24.33 trillion rise in the total debt was a combination of the N7.7 trillion borrowed and naira devaluation.
The DMO explained that the exchange rate shifted from N899.39/$1 in Q4 2023 to N1,330.26/$1 in Q1 2024 which represents a depreciation of 32.39 percent, causing the naira value of external debt to rise sharply despite the actual dollar-denominated debt remaining relatively stable.
The statement said: “Returning to the trend in the Total Debt Data between Q4, 2023, and Q1, 2024, the increase in Naira Terms of N24.33 trillion is being misinterpreted as New Borrowing. The amount actually represents New Borrowing of N2.81 trillion as part of the New Domestic Borrowing of N6.06 trillion provided in the 2024 Appropriation Act, New Domestic Borrowing of N4.90 trillion as part of the securitization of the N7.3 trillion Ways and Means Advances approved by the National Assembly, as well as, the depreciation in the official Naira Exchange Rate from USD/899.39 in Q4, 2023 to USD/N1,330.26 in Q1, 2024.
“Consequently, whereas, the Total External Debt Stock was relatively flat at USD42.50 billion and USD42.12 billion in Q4, 2023, and Q1, 2024 respectively, the Naira values were significantly different at N38.22 trillion and N56.02 trillion respectively, representing a difference of N17.8 trillion.
“This explains the perceived sharp increase of N24.33 trillion in the Total Debt Stock in Q1, 2024. The difference in the Exchange Rate for the two (2) periods also explains why in US Dollar Terms, the Total Debt Stock actually declined in Q1, 2024 (USD91.46 billion) when compared to Q4, 2023 (USD97.34 billion).”
The DMO had on June 20, announced that Nigeria’s total public debt stood at N121.67 trillion at the end of the first quarter of this year.
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