What every Nigerian should know now about Nigeria's surging debt profile under Tinubu

1.
- Nigeria's Treasury Bills debt is now N10.4 trillion, a 60% rise in three months

2.
- This is the largest T-Bills debt balance on record in Nigeria's history.
- The DMO has issued several Treasury Bills auctions in the first half of 2024

3.
- Nigeria's total domestic debt profile was N65.6 trillion in Q1 2024, up 11% from the previous quarter
- Nigeria's public debt profile in naira terms is N114.7 trillion, and $92.2 billion in dollar terms


This data indicates a significant increase in Nigeria's Treasury Bills debt, from N6.5 trillion in December 2023 to N10.4 trillion in March 2024, representing a 60% rise.

This means that:

The Central Bank offered N2.1 trillion in Treasury Bills in Q1 2024 but received a subscription of N21.7 trillion, indicating high demand.

Yields rose to 21.1% in Q1 2024 as investors sought higher returns.

In Q2 2024, another N1.64 trillion in Treasury Bills will be sold, but this will be used to roll over maturing bills, meaning the debt will not be repaid but rather deferred to a later date.




Nigeria's public debt profile has increased, with:

- Total domestic debt rising to N65.6 trillion in Q1 2024, up 11% from December 2023

- External debt decreasing to $42.1 billion, due to a reduction in IMF debt

- Total public debt in naira terms reaching N114.7 trillion, and $92.2 billion in dollar terms

- Debt-to-GDP ratio exceeding the 40% limit, now at 48.2%


DMO attributing the surge in debt to currency devaluation, with only N7.71 trillion borrowed from domestic sources in Q1 2024

This suggests a significant increase in Nigeria's debt profile, driven largely by domestic borrowing and currency devaluation, which may raise concerns about debt sustainability and economic implications.

Source:

https://makemoneytrends./2024/06/30/nigeria-treasuries-bills-debt-rises-to-the-highest-point-under-tinubu/

Wow!

Where is all these money going to?

It is not being felt where it matters most in the economy, which is improvement in PP of the common man and reduction in cost of living...

If government plan is to raise money for budget then they have to stop looking at borrowing everytime! They need to be creative

PBAT is on the right track. The problem with many Nairaland commenters is that they like to blame their parents for their woes in life; thereafter, the blame game is shifted to the Federal government. Many of these people are sad Easterners. It still pains them that Obi-diot the Pandora box and his headless mob Obi-diot supporters lost a credible election. Instead of tapping into the opportunity of investing in Treasury Bills and national fixed-income instruments, they are busy calling PBAT a debtor. Governments all over the world do borrow money for different reasons. Wake up, fix your life, and liberate yourself from poverty so that your offspring will not blame you the same way you are blaming PBAT.

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