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Nigeria’s Public Debt Rises by N24.33 Trillion in Three Months

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The Debt Management Office (DMO) of Nigeria has reported a significant increase in the nation's total public debt

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%.

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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.

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Disneyland Increases Ticket Prices for Peak Days and Annual Passes

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Disneyland Increases Ticket Prices for Peak Days and Annual Passes

Disneyland has announced a price increase for tickets during its busiest days, effective immediately. While the entry-level ticket will remain at $104, as it has for the past six years, other tiers based on demand will see price hikes ranging from $7 to $12, marking an increase of about 6%. The price hikes affect tickets for high-demand periods such as holidays and school vacations.

In addition to single-day tickets, the cost of Disneyland’s Magic Key annual passes will rise by between $100 and $125, depending on the tier, with increases ranging from 6% to 20%. The new prices include $599 for the Imagine pass, $974 for the Enchant pass, $1,374 for the Believe pass, and $1,749 for the Inspire pass.

Despite the increases, Disneyland is offering discounted options for visitors during off-peak times. A $50 children’s ticket offer will be available starting on October 22 for use beginning January 7. Additionally, a promotion allows a family of four to visit the park for $308 in January or February—two $104 adult tickets and two $50 children’s tickets.

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Jessica Good, a Disneyland Resort spokesperson, emphasized that Disney continues to provide a wide range of ticketing, dining, and accommodation options, along with promotional offers throughout the year, aiming to make the park accessible to as many families as possible.

The tiered ticket system, similar to pricing models in the airline and hotel industries, is designed to balance demand throughout the year. Tickets in the highest demand Tier 6, for holidays like Christmas and Halloween, will increase to $206 per ticket.

While the cost of Disney’s theme park experiences has drawn criticism from some consumers, the company maintains its commitment to offering budget-friendly options for guests who visit during less busy periods.

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Travelers Brace for Hurricane Milton: Airlines, Theme Parks, and Cruise Lines Adjust Plans

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Travelers Brace for Hurricane Milton: Airlines, Theme Parks, and Cruise Lines Adjust Plans

With Hurricane Milton rapidly approaching Florida’s west coast, travel plans across the region are being significantly disrupted. The Category 4 storm, carrying winds of up to 145 mph, has triggered widespread cancellations, route changes, and closures as airlines, theme parks, and cruise lines prepare for its anticipated landfall on Wednesday.

Florida Governor Ron DeSantis declared a state of emergency across more than 50 counties, with the National Oceanic and Atmospheric Administration (NOAA) warning that Hurricane Milton is expected to hit Florida’s west coast with dangerous force.

Airports are taking precautionary measures, with Tampa International Airport suspending operations early on Tuesday, stating that it will “reopen when safe to do so.” Orlando International Airport, a major hub, announced it will close by 8 a.m. on Wednesday. Southwest Airlines, which accounts for a significant portion of flights in and out of Orlando, has already canceled 402 flights for Wednesday. FlightAware reports that over 85% of flights at Orlando International Airport have been grounded for the day, with many more cancellations at Tampa and Southwest Florida International airports.

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Theme parks are also responding to the storm. Busch Gardens Tampa will be closed from Tuesday through Thursday, while SeaWorld Orlando remains open for the time being but continues to monitor Hurricane Milton’s path closely.

Cruise lines have been proactive as well, with Carnival informing passengers that ports in Jacksonville, Tampa, and Miami are likely to close. As a result, several routes and destinations have been altered to steer clear of the storm’s impact.

As Hurricane Milton nears, travelers and local residents are urged to stay informed and adjust plans accordingly, with further disruptions expected in the coming days.

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States Sue TikTok, Alleging Impact on Teen Mental Health Crisis

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States Sue TikTok, Alleging Impact on Teen Mental Health Crisis

A coalition of 14 U.S. states has filed lawsuits against TikTok, accusing the social media giant of exacerbating a mental health crisis among teenagers. The bipartisan group of attorneys general claims the platform’s addictive features target young users, misleading the public about the safety of prolonged use, and contributing to negative mental health outcomes.

In the lawsuit, filed in New York, the attorneys general argue that TikTok intentionally designed features that drive compulsive use, negatively affecting millions of teens. New York Attorney General Letitia James stated that TikTok’s influence has led to tragic incidents, including the death of a 15-year-old boy in Manhattan, who died while “subway surfing” after watching similar videos on TikTok.

James emphasized that many teenagers are struggling with increased anxiety, sadness, and depression, attributing some of these effects to the app’s alerts, disappearing videos, and beauty filters. These features, she said, encourage constant checking of the platform and contribute to issues surrounding body image.

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TikTok, which is already grappling with legislation that could ban it from the U.S. unless its parent company, Bytedance, sells the app, called the lawsuit “disappointing.” The platform contends that it has introduced tools to limit screen time and content exposure, but the lawsuit claims these tools are ineffective.

In addition to the mental health accusations, the lawsuit also points to TikTok’s virtual currency as running an unlicensed money transmission business in Washington D.C. The plaintiffs seek financial penalties and a court order to halt TikTok’s practices that allegedly harm teenagers.

TikTok has responded by defending its efforts to protect young users, stating, “We strongly disagree with these claims,” and reaffirming their commitment to improve the platform.

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