DMO debunks media claims of Nigeria’s debt rising from N21trn to N142trn under Tinubu

The Debt Management Office (DMO) has refuted recent media reports claiming that President Bola Ahmed Tinubu inherited a public debt of N21 trillion, which allegedly skyrocketed to N142 trillion.

In a statement issued on Monday, the DMO clarified that the actual total public debt as of June 30, 2023—after President Tinubu assumed office on May 29, 2023—was N87.38 trillion.

The DMO’s statement aimed to correct widespread misinformation about Nigeria’s debt profile, which had caused confusion among the public.

The figure of N87.38 trillion represents the total external and domestic debt of the Federal Government of Nigeria (FGN), the 36 states, and the Federal Capital Territory (FCT).

“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, was N87.38 trillion, and not N21 trillion as reported in the media.

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The Total Public Debt published by the DMO includes the external and domestic debt of the Federal Government, all 36 states, and the Federal Capital Territory,” the statement read.

This clarification follows the circulation of inaccurate reports claiming that Nigeria’s debt stock had dramatically increased from N21 trillion to N142 trillion under President Tinubu’s administration.

The DMO emphasized the importance of relying on verified, official data to avoid spreading misinformation, especially concerning vital issues like public debt.

The correct debt figure of N87.38 trillion reflects a more comprehensive assessment of Nigeria’s public debt, encompassing obligations at all levels of government. It includes external borrowings from international financial institutions and domestic debt instruments such as bonds and treasury bills.

Amid the confusion, analysts have pointed out that addressing Nigeria’s growing debt burden will require effective strategies to increase revenue, reduce inefficiencies, and improve the country’s overall debt sustainability.

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Nigeria’s debt servicing obligations have continued to escalate; particularly as the nation’s external debt profile grows.

In the third quarter of 2024 alone, payments to multilateral creditors, such as the International Monetary Fund (IMF) and the World Bank, accounted for 88.2% of the country’s total expenditure. Bilateral creditors, particularly China, represented the remaining 11.8%.

In total, Nigeria spent $712.66 million servicing multilateral debts, with principal repayments at $593.87 million, interest payments at $117.69 million, and other charges totaling $1.10 million.

This mounting debt service burden has placed increasing pressure on Nigeria’s public finances as the government faces dwindling revenue and escalating expenditure commitments.

Looking ahead, the Federal Government’s 2025 budget, currently before the National Assembly, allocates N16.3 trillion for debt servicing out of a proposed N49.7 trillion in total expenditure.

Despite these financial challenges, the DMO highlighted the successful issuance of $2.2 billion in Eurobonds on international capital markets, which attracted subscriptions exceeding $9 billion. This, according to the DMO, demonstrates continued investor confidence in Nigeria’s debt instruments.