DMO refutes claim of debt surge from N21tr to N142tr debt under Tinubu

The Debt Management Office (DMO), on Monday, dismissed reports claiming that Nigeria’s public debt rose from N21 trillion to N142 trillion under President Bola Tinubu, calling it ‘inaccurate.’

The DMO’s latest figures, published on its website last Tuesday, show that Nigeria’s public debt reached N142.3 trillion by September 30, 2024. This marks a 5.97% increase (an additional N8.02 trillion) from the N134.3 trillion recorded in June 2024.

The figure comprises N68.89 trillion in external debt and N73.4 trillion in domestic debt. In dollar terms, the figure saw a slight increase of 0.29 per cent, rising from $42.90 billion in June to $43.03 billion by September. However, in naira terms, the external debt climbed sharply by 9.22 per cent, jumping from N63.07 trillion to N68.89 trillion over the same period.

Following the release of this debt data, it has been criticised by the public, with some saying that Tinubu fell short on his promise to reduce Nigeria’s reliance on loans.

“A government that cannot properly fund itself will also lack the flexibility or fiscal scope to sensibly manage the economy or respond to external shocks,” Tinubu made this commitment in 2023 during the inauguration of the presidential committee on fiscal policy and tax reforms.

“Instead, debt service begins to consume an ever greater portion of the government’s already meagre revenues.

“This traps the economy in a vicious cycle of borrowing simply to service previous debt and leaves almost no scope for socio-economic development.

“As President, I am determined to end this cycle. I promised that my administration would address all of the issues impeding investment and economic growth in Nigeria. This promise is why I saw an end to the fuel subsidy. It is the reason the Central Bank has called an end to its multiple exchange rate system under my watch.”

In response to the headline circulating in the media, DMO clarified that when the president took office on May 29, 2023, the country’s total public debt stood at N87.38 trillion as of June 30, 2023, not N21 trillion as reported by some news outlets.

“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 87.38 trillion and not N21 trillion as reported in the media,” DMO corrected in a statement on Monday.

“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.”

Nigeria’s public debt is the total amount of money the country owes to creditors inside and outside the country. It includes domestic debt and external debt.

Based on the latest figure, the per capita debt for each Nigerian is roughly about N656,514, when the total debt of N142.32 trillion is divided by the estimated population of 216.78 million.