Nigeria’s external debt commitment rose by $11.77bn in the last three years, according to debt statistics obtained from the Debt Management Office.
The country’s external debt rose from $10.32bn in June 30, 2015 to $22.08bn as of June 30 this year, representing an increases of 114.05% in the last three years.
While multilateral debt made up $10.88bn or 49.28 per cent of the country’s external debt profile, most of the increases in the last three years occurred in the area of commercial loans, DMO said.
Commercial foreign loans, which stood at $1.5bn as of June 30, 2015, had risen to $8.8bn as of June 30 2018, which is an increase of $7.3bn or 486.67% over the past three years
With a commitment of $8.47bn, the World Bank is responsible for 38.36 per cent of the country’s foreign portfolio, with other multilateral organisations such as the African Development Bank with a portfolio of $1.32bn and the African Development Fund with a portfolio of $843.47m also on the list.
Also on the country’s debt profile are The International Fund for Agricultural Development with a portfolio of $159.44m; the Arab Bank for Economic Development with a portfolio of $5.88m; the EDF Energy (France) with a portfolio of $64.96m and the Islamic Development Bank with a portfolio of $16.92m.
The DMO stats show that bilateral debts make up $2.39bn or 10.87 per cent of the country’s external debt exposure.
Some of the bilateral agencies to which the country is indebted are the Export-Import Bank of China with a portfolio of $1.91bn; the Agence Francaise de Development with a portfolio of $274.98m; the Japan International Cooperation Agency with a portfolio of $74.69m; the EXIM Bank of India with a portfolio of $4.76m; and Germany (KFW) with a portfolio of $132.24m.
Meanwhile, the domestic component of the country’s total public debt decreased marginally recently as a result of moves to rebalance the local/foreign debt ratio, the DMO stated.
A major highlight in the latest public debt data was the decrease in the Federal Government’s domestic debt, which declined from N12.59tn in December 2017 to N12.58tn in March 2017 and N12.15tn in June 2018.
The DMO attributes the reduction in the FGN’s Domestic Debt Stock to the redemption of N198bn Nigerian Treasury Bills in December 2017 and another N639bn between January and June 2018.
It added that the implementation of the Public Debt Management Strategy, whose overall objective was to ensure that Nigeria’s debt is sustainable, was already yielding positive results.