The Debt Management Office (DMO) revealed that the Federal Government of Nigeria (FGN) spent a staggering N4.381 trillion servicing its domestic debt obligations throughout 2023. This significant sum underscores the financial challenges facing the nation, as it grapples with managing its debt burden.
As of December 31, 2023, Nigeria’s domestic debt stood at N53.258 trillion, highlighting the scale of the fiscal obligations that the government must address. The DMO provided a detailed breakdown of the monthly expenditures on debt servicing, with amounts ranging from hundreds of billions to over a trillion naira.
The servicing of Nigeria’s domestic debt primarily involved various debt instruments, including Nigerian Treasury Bills (NTBs), Federal Government Bonds, Treasury Bonds, Green Bonds, FGN Sukuk Bonds, FGN Savings Bonds (FGNSB), and Promissory Notes. FGN Bonds accounted for the largest portion of the debt profile, followed by NTBs and Promissory Notes.
At the subnational level, certain states emerged as leading debtors, with Lagos, Delta, Ogun, and Rivers bearing the highest domestic debt burdens. Lagos State topped the list with a debt of nearly N1 trillion, followed by Delta, Ogun, and Rivers states. Despite variations in debt levels among states, the overall domestic debt burden of the 36 states and the Federal Capital Territory (FCT) amounted to a staggering N5.741 trillion.
Notably, Jigawa State stood out as the least indebted state, showcasing a relatively lower debt profile compared to others. This disparity underscores the diverse financial situations across Nigeria’s states, with some facing more significant debt challenges than others.
The disclosed figures provide crucial insights into Nigeria’s fiscal landscape, highlighting the pressing need for effective debt management strategies and sustainable financial policies. As the nation navigates its economic challenges, addressing the issue of debt servicing will remain a critical priority to ensure fiscal stability and sustainable development.
