Nigeria’s debt is set to reach $87.4 billion (N28.5 trillion) with the new $3.4 billion(N1.1trillion) loan request approved by the International Monetary Fund (IMF).
The International Monetary Fund had on Tuesday approved $3.4 billion COVID-19 emergency financing to help Nigeria free up more resources to protect lives and livelihoods.
The debt profile, according to the Debt Management Office (DMO, ) as updated in March 2020, stood at $84 billion (N27.4 trillion).
With the new approval of $3.4 billion by the IMF, the total credit would rise to $87.4 billion (N28.5 trillion) when disbursed.
External debt would grow to $31 billion (N10.1 trillion), from $27.67 billion (N9 trillion), while domestic borrowing is $56.37 billion (N18.37 trillion).
However, the Debt Management Office (DMO) said the N850 billion loan request approved by the Senate was not new or incremental, rather a shift in the borrowing source of an earlier approved external loan request.
“Thus, the ₦850 billion is not new or Incremental borrowing, rather it is an amendment of the source of borrowing from External to Domestic. With this change, the total New Domestic Borrowing under the 2020 Appropriation becomes ₦1,594.99 billion which is the same as the total New Borrowing in the 2020 Appropriation Act,” DMO said.
The conversion rate adopted is N326 per $1.
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