Economy Finance News

Nigeria’s External Reserve Deplated by $373.23m as Country’s Debt Profile Hits N28.628tr

Nigeria’s foreign reserves slumped from $36.57 billion to $36.2 billion in the period between 1st and 29th June, equivalent to a depletion of $373.23 million, data gleaned from the Central Bank of Nigeria’s (CBN’s) on Thursday revealed.

This coming as at a time the country’s total debt profile as at March 31, 2020 now stands at N28,628,493.63 trillion.

The reserves attained a high of $45.17 billion on 11th June 2019 but saw a dramatic fall of $11 billion between that time and 28th April 2020, when the figure stood at $33.89 billion.

On Wednesday, U.S. credit rating agency, Moody’s Investors Service, disclosed that Nigerian banks’ foreign currency gap could leap to $5 billion by reason of disrupted foreign inflows, low oil prices and poor remittances triggered by the coronavirus outbreak.

It observed in a report tagged “Renewed Foreign Currency Shortages Highlight Vulnerability for Banks” that these difficulties might cause a repeat of the foreign currency liquidity pressures that constrained Nigerian banks’ foreign exchange operations during the oil crash of 2016-2017.

Meanwhile, the Debt Management Office on Thursday disclosed that Nigeria’s total debt profile as at March 31,2020 now stands at N28,628,493.63 trillion.

The figure, contained on its website, is a slight increase from the N27.4 trillion figure of December 31, 2019.

A breakdown of the figure shows that the total external debt is N9,978,303.26 trillion representing 34.89 per cent of the debt profile; while total domestic debt is N18,641,190.37 trillion (65.11 per cent). Federal Government’s debt stands at N14,534,746.84, representing 50.77 per cent. The debt of the States and Federal Capital Territory stands at N4,1.6,443.53 trillion (14.43 per cent).

The DMO clarified that the domestic debt stock for 28 States, (Abia, Adamawa, Akwa Ibom, Bauchi, Bayelsa, Benue, Cross River, Delta, Ebonyi, Edo, Ekiti, Enugu, Gombe, Imo, Jigawa, Kaduna, Kogi, Kwara, Nassarawa, Niger, Ogun, Ondo, Osun, Oyo, Plateau, Sokoto, Taraba.


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