Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 40)

According to the Debt Management Office (DMO), there was an increase in the country’s total public debt stock in Q2 2021 from the total recorded in Q1 2021.1 The total public debt which was reported as N33,107,247.23(in millions) in Q1 2021, increased to N35,465,005.39(in millions)  in Q2 2021 as reported by the DMO. Although domestic debts accounted for 61.34 percent of the total public debts in Q2, which is less than the 62.44 percent it accounted for in Q1, the total amount of domestic debts increased from N20,636,881.02(in millions) in Q1 2021 to N21,754,127.62(in millions)  in Q2 2021.However,  external debt which made up 37.67 percent of the total public debts in Q1 2021 experienced a  slight increase to account for 38.66 percent of the total public debt in Q2 2021. The total amount of external debts also increased from N12,470,366.21(in millions)in Q1 2021, to N13,710,877.77(in millions)  in Q2 2021. As the government continues to pursue debt financing as a source of funding public expenditure, it should ensure that such funds are invested  mostly on capital expenditures which will generate funds for servicing these debts to avoid default in repayment which increases the interests on them.

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