The DMO data made available by analysts at FSDH Research indicates the external debt (federal government and states) accounted for 15.50 per cent of the total debt stock at N1.29 trillion ($8.26 billion at exchange rate of 155.75/ $1).
The nation’s debts currently stand at N8.32 trillion representing an increase of 10.20 per cent from the December 31, 2012 figure of N7.55 trillion.
The external debt contributed about 13.59 per cent to the total debt as at second quarter of 2013. The increase in the contribution of external debt to the total debt stock in Q3 2013, compared to Q2 2013 was due to the benign interest rate environment in the international financial system, which the federal and state governments utilize to their advantage.
Meanwhile, the National Debt Management Framework (2013-2017) prepared by the Debt Management Office (DMO) indicates that the acceptable optimal ratio of domestic debt to external debt by the federal government should be 60:40, as opposed to the current distribution of about 84:16, as at Q3 2013.
Further analysis shows that Nigeria’s total external debt stock as at September 30, 2013 stood at $8.26 billion, representing an increase of 19.36 per cent from $6.92 billion as at June 30, 2012.
The breakdown of the external debt as at end-September 2013 showed that 71.23 per cent was owed to multilaterals, which include the World Bank Group, International Fund for Agricultural Development (IFAD), African Development Bank Group (ADB), Arab Bank for Economic Development in Africa (ABEDA), International Development Bank (IDB) and Economic Development Fund (EDF); 10.29 per cent was owed to bilateral parties and 18.47 per cent was owed to others.
The DMO puts the country’s domestic debt stock at N7.03 trillion as at third quarter of 2013, up by 2.63 per cent from N6.85 trillion as at June 30, 2012.
The breakdown of the total domestic debt stock by instrument type as at September 30, 2013 shows that the FGN Bonds accounted for N4.22 trillion representing 59.93 per cent; Nigerian Treasury Bills (NTBs) accounted for N2.48 trillion, representing 35.31 per cent and Treasury Bonds (TBs) accounted for N334.56 billion, representing 4.76 per cent.
Analysts however, forecast that the GDP and debt stock for Nigeria in the next three years shows that the debt position is sustainable.
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