December 17, 2021/Coronation Research

According to Nigeria’s Debt Management Office (DMO) report, Nigeria’s total public debt rose by 7.2% or N2.5trn from N35.5trn at end-June ‘21 to N38trn at end- September 2021. When compared to the same period last year, the total public debt increased by 17.9% or N5.8trn. As at end- September, the public debt is equivalent to 24.9% of 2020 nominal GDP.

This is in line with the DMO’s debt management targets for the period 2020-2023 which raised the ceiling for public debt to 40% of GDP and targets a domestic to external debt ratio of 70:30. In the first nine months of 2021, Nigeria spent N2.5trn on debt servicing payments, N1.7trn was spent on servicing domestic debts and N755bn spent on external debt servicing.

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