The total national debt stock of the Federal Government of Nigeria which comprises the debt from the 36 state government and Federal capital territory increased by N3.28 trillion in the first six months of the year 2022.
According to the Debt Management Office (DMO), the total debt stock, a combination of domestic and external debt, rose from N39.56 trillion at the end of last year to N42.84 trillion at the close of the second quarter of 2022.
The breakdown of the debt showed the external debt accounted for N16.62 Trillion as of June 30, with the domestic debt contribution of N26.23 trillion during the same period.
The Debt Management Office explained that more than half of the external debt is concessional and semi-concessional loans. It further disclosed that domestic debt had risen due to the loans borrowed to finance the FG budget deficit, coupled with state governments and the FCT obtaining new loans.
According to the DMO, “Over 58 percent of the external debt stock are concessional and semi-concessional loans from multilateral lenders such as the World Bank, International Monetary Fund, Afrexim, and African Development Bank and bilateral lenders including Germany, China, Japan, India, and France.”