The Debt Management Office (DMO) has debunked recent media reports claiming that President Bola Ahmed Tinubu inherited N21 trillion in public debt which arose to N142 trillion.
In a statement issued by the DMO on Monday, the agency said the actual total public debt as of June 30, 2023 after President Tinubu took office stood at N87.38 trillion.
President Tinubu took office on May 29, 2023.
The DMO clarified that the figure includes the external and domestic debt of the Federal Government of Nigeria (FGN), the 36 states, and the Federal Capital Territory (FCT).
“As a matter of fact, the Total Public Debt Stock as at June 30, 2023, which was the first published debt data after President Bola Ahmed Tinubu assumed office (on May 29, 2023); was N87.38 trillion, and not N21 trillion as reported in the media. Furthermore, it should be noted that the Total Public Debt published by the DMO comprises the External and Domestic Debt, not only of the Federal Government of Nigeria (FGN), but also of the thirty-six (36) States and the Federal Capital Territory,” the statement read.
Misrepresentation of Debt Figures
The DMO’s clarification comes in the wake of widespread misreporting on Nigeria’s debt profile.
Some media outlets had earlier published that the country’s debt stock stood at N21 trillion, creating confusion about the actual state of public debt inherited by the current administration.
The agency emphasized the importance of relying on verified data from official publications to avoid the spread of misinformation, particularly on critical issues such as public debt.
“The Debt Management Office (DMO) wishes to notify the general public that the news headline circulating in the media titled, ‘How Nigeria’s Debt Rose from N21 trillion to N142 trillion under Tinubu’ is inaccurate”, it said.
Understanding Nigeria’s Debt Profile
- The clarified N87.38 trillion debt stock reflects a more comprehensive assessment of Nigeria’s public debt, capturing obligations across all tiers of government.
- The debt figure comprises both external borrowings from international financial institutions and domestic debt instruments such as bonds and treasury bills.
- Analysts note that addressing the growing debt burden will require strategic measures to boost revenue, reduce wastage, and improve debt sustainability.
Rising Debt Service Burden
- Nigeria’s debt servicing obligations continue to rise amid the country’s growing external debt profile.
- Payments to multilateral creditors alone, such as the IMF and World Bank, represented 88.2% of the total expenditure in Q3 2024. Bilateral creditors, particularly China, accounted for the remaining 11.8%.
- Nigeria spent $712,663,738.33 servicing multilateral debts, with the principal repayments standing at $593,875,221.94, interest payments at $117,687,033.80, and other charges totaling $1,101,482.59.
Key beneficiaries in this category include:
- International Monetary Fund (IMF): $406,975,201.79
- International Development Association (World Bank): $218,770,714.58
- African Development Fund: $62,863,863.90
- African Development Bank: $14,843,345.92
- Islamic Development Bank: $2,667,950.12
This debt service burden reflects the financial pressures on Nigeria’s public finances as the country grapples with declining revenue streams and significant expenditure commitments.
In the Federal Government’s 2025 budget currently before the National Assembly, President Tinubu’s administration plans to spend N16. 327 trillion on its debt obligations, out of the proposed expenditure of N49.7 trillion.
The DMO said that the recent successful issuance of $2.2 billion Eurobonds on the international capital markets, which received subscriptions exceeding $9billion, was a demonstration of investor confidence in the nation’s instruments.
