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Nigeria’s public debt surged to N97.34tn in Q4 2023– Report

Published

9 months ago

March 23, 2024

As of the fourth quarter of 2023, Nigeria’s public debt had risen to N97.34tn ($108bn), according to the Debt Management Office of Nigeria.

This was revealed by DMO in a statement made accessible to the media on Friday.

The statement partly read, “Nigeria’s public debt stock as at December 31, 2023 was N97.34trn or $108.229bn.”

“This amount comprises the domestic and external debt stocks of the Federal Government of Nigeria, the 36 state governments and the Federal Capital Territory.”

According to the document, this sum represents a notable increase from the N89.43 trillion that was reported in September 2023.

According to DMO, the government’s increased domestic borrowing to partially finance the deficit in the 2024 Appropriations Act and the payments made by bilateral and multilateral lenders were the main causes of the increase.

It was reported that external debt, at N14.3822trn, accounted for the remaining 39% of the total public debt stock, with total domestic debt accounting for 61% at N59.12tn.

“Consistent with the debt management strategy, Nigeria’s external debt stock was skewed in favour of loans from multilateral (49.77%) and bilateral lenders (14.02 per cent ) or a total of 63.79% which are mostly concessional and semi-concessional,” the document added.

According to the DMO, it continues to persist in using the finest practices for managing public debt and is dedicated to bolstering national income.

“Whilst the DMO continues to employ best practice in public debt management, the recent and ongoing efforts of the fiscal authorities to shore up revenue will support debt sustainability,” it stated.

Nigeria’s debt-to-GDP ratio decreased from 22.47% in 2012 to 23.2% in 2022, according to the DMO.

Falling oil prices, large-scale crude oil theft, and the substantial amount spent on fuel subsidies are currently having an impact on Nigeria’s governmental finances as the country struggles with mounting debt.

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VenturesNow

IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

2 days ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

VenturesNow

Libya’s eastern govt accepts petrol subsidy elimination

Published

2 days ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.