Business
Nigeria’s Public Debt Rises by N24.33 Trillion in Three Months
The Debt Management Office (DMO) of Nigeria has reported a significant increase in the nation’s total public debt, which reached N121.67 trillion (approximately $91.46 billion) as of March 31, 2024. This figure includes the combined domestic and external debts of the Federal Government of Nigeria (FGN), the thirty-six state governments, and the Federal Capital Territory (FCT).
Comparison with Previous Quarter
As of December 31, 2023, Nigeria’s total public debt stood at N97.34 trillion (approximately $108.23 billion). The rise to N121.67 trillion represents a substantial increase of N24.33 trillion or 24.99% over a three-month period.
Impact of Naira Devaluation
The increase in debt is driven significantly by naira devaluation. Despite the nominal increase in naira terms, the total debt in dollar terms actually reduced by $16.77 billion or 18.34%.
Domestic vs. External Debt
As of March 31, 2024, the breakdown of Nigeria’s total debt is as follows:
- Domestic Debt: N65.65 trillion (approximately $46.29 billion), accounting for 53.96% of the total debt.
- External Debt: N56.02 trillion (approximately $42.12 billion).
Growth in Domestic Debt
Excluding the impact of naira exchange rate movements, the domestic debt component increased from N59.12 trillion at the end of December 2023 to N65.65 trillion by March 31, 2024. This rise of N6.53 trillion or 11.05% is attributed to:
- New borrowing to partially finance the 2024 Budget deficit.
- Securitization of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria (CBN).
Official Statement
The DMO’s statement read: “Nigeria’s Total Public Debt, comprising the Total Domestic and External Debts of the Federal Government of Nigeria (FGN), the thirty-six (36) state governments, and the Federal Capital Territory (FCT), stood at N121.67 trillion (USD91.46 billion) as of March 31, 2024. The comparative figure for December 31, 2023, was N97.34 trillion (USD108.23 billion). Total Domestic Debt was N65.65 trillion (USD46.29 billion) while Total External Debt was N56.02 trillion (USD42.12 billion). Excluding Naira exchange rate movements in Q1 2024, only the Domestic Debt component of Total Public Debt grew from N59.12 trillion on December 31, 2023, to N65.65 trillion on March 31, 2024. The increase was from new borrowing to part-finance the 2024 Budget deficit and securitization of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria.”
Government Financing Efforts
The DMO’s Director General, Patience Oniha, stated that the federal government has raised N4.5 trillion out of the N6 trillion target in the 2024 budget. Domestic securities remain a major source of federal government spending.
This substantial rise in debt underscores the economic challenges facing Nigeria, including the impact of currency devaluation and the need for new borrowing to finance budget deficits. The government’s focus on raising funds through domestic securities highlights its strategy to manage these financial pressures while seeking to sustain economic stability.
Supermarket chain Iceland has filed a trademark application for its well-known “King Prawn Rings,” urging rival supermarkets to stop selling similar products. Iceland, headquartered in Flintshire, claims it has faced increasing imitation since introducing its prawn rings in 1991.
In a bold open letter shared on social media platform X (formerly Twitter), Iceland called out major competitors Aldi, Tesco, Lidl, and Asda, accusing them of selling “copy crustaceans.” The letter cheekily asserted, “The King Prawn Ring is ours, and we won’t be letting you off the hook.”
Lidl humorously responded, “Here was us thinking it was a classic 1970s party dish.”
Iceland’s letter, signed by “Iceland Foods,” warned other retailers to cease selling prawn rings, especially ahead of Christmas. The chain emphasized its intent to pursue legal action if competitors don’t comply, declaring, “Our lawyers are more than ready to dive into legal waters.”
The prawn ring battle has sparked social media buzz, with consumers eagerly watching how rival supermarkets will respond to Iceland’s trademark claim.
The union representing striking Boeing workers has stated that its members are not interested in the company’s latest pay proposal, which includes a 30% raise over four years. According to the International Association of Machinists and Aerospace Workers (IAM), a survey revealed overwhelming dissatisfaction with the offer, labeling it as “inadequate.”
This rejection follows Boeing’s new “best and final” offer, which also included a performance bonus reinstatement, improved retirement benefits, and a one-time $6,000 signing bonus. The company set a deadline for the deal to be ratified by union members by midnight on September 27.
However, IAM criticized Boeing for sending the offer directly to workers and the media without consulting union leaders and stated that the time frame was insufficient to organize a proper vote. Boeing has denied the union’s claims and said it would allow more time and provide support to facilitate the vote.
China’s central bank, the People’s Bank of China (PBOC), has launched a significant package of measures aimed at revitalizing its struggling economy. PBOC Governor Pan Gongsheng announced plans to lower borrowing costs and allow banks to expand lending to stimulate economic activity.
With recent economic data raising concerns that China may miss its 5% growth target this year, the central bank will cut the reserve requirement ratio (RRR)—the amount of cash banks must hold in reserve—by half a percentage point, releasing around 1 trillion yuan ($142 billion) into the economy. Additional cuts may follow later in the year.
The package also addresses China’s property market crisis by cutting interest rates for existing mortgages and reducing minimum down payments for all homes to 15%.
Asian stock markets responded positively to the news, seeing a boost after Mr. Pan’s announcement, which came during a rare joint press conference with officials from two other financial regulators.
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