Nigeria’s overall public debt increased by 3% to $103.3 billion in the second quarter of this year, mainly mostly to domestic borrowing to pay the budget deficit, according to the Debt Management Office (DMO).
Nigeria’s deficit has increased this year due to the high expense of a fuel subsidy at a time when oil revenue has decreased due to crude theft and pipeline damage.
According to the DMO’s most recent figures, obtained by Reuters on Tuesday, public debt climbed from $100.07 billion in March this year to $103.3 billion by the end of June.
Despite the fact that the debt accounts for 23% of the country’s GDP, well under the government’s self-imposed ceiling of 40%, Nigeria’s debt service expenses are growing while revenues are declining.
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Nigeria spent more money servicing its debt than it earned between January and April 2022.
SOURCE: myjoyonline
