In May 2023, the president of the country, Bola Tinubu, during his inauguration speech, sharply declared that fuel subsidy is ‘gone’.
This, alongside the floating of the Nigerian currency, the Naira, drove the economy to its lowest levels ever.
As a result, the value of the dollar now is significantly worse than it was before the start of the current administration.
This was highlighted by the current data from the Debt Management Office, as published by the National Bureau of Statistics in its latest Nigeria Domestic and Foreign Debt report for Q2 2024.
The report showed that while Nigeria’s debt in the dollar dropped, its debt in the Naira saw a significant increase.
“Nigeria’s public debt stock which includes external and domestic debt stood at N134.30 trillion (US$91.35 billion) in Q2 2024 from N121.67 trillion (US$91.46 billion) in Q1 2024, indicating a growth rate of 10.38% on a quarter-on-quarter basis,” the NBS stated.
Here the country’s debt in the dollar dropped from US$91.46 billion in the first quarter of the year, to US$91.35 billion, in Q2, despite the fact that the debt increased from N121.67 trillion to N134.30 trillion within the same period.
“Total external debt stood at N63.07 trillion (US$42.90 billion) in Q2 2024, while total domestic debt was N71.22 trillion (US$48.45 billion).
The share of external debt (in naira value) to total public debt was 46.96% in Q2 2024, while the share of domestic debt (in naira value) to total public debt was 53.04%,” it added.
Nigeria’s recent loan from the World Bank
In September, the World Bank approved a $1.57 billion financing package for Nigeria as part of a new program aimed at boosting the country’s health and education sectors.
Following the elimination of fuel subsidies, the bank authorized two significant loan projects intended to improve Nigeria’s economic stability and give vital assistance to its most vulnerable citizens.
According to the Debt Management Office, the World Bank continues to be Nigeria’s biggest lender, with over $15 billion in loans as of the end of March.
In contrast, the president of the country stated that the nation’s Ways and Means debt, which amounted to more than N30 trillion, had been paid off.
He made the revelation at the national speech on the 1st of October, 2024, Nigeria’s 64th Independence Day.
