The Nigerian government has clarified that it borrowed N7.71 trillion in the first quarter of 2024, countering widespread reports that the nation’s borrowing reached N24.33 trillion during the same period. The announcement aims to address public concerns and provide accurate information regarding the country’s fiscal activities.
The clarification was issued by the Debt Management Office (DMO) following a series of media reports and public discourse suggesting that Nigeria’s borrowing had surged to unprecedented levels. According to the DMO, the figure of N24.33 trillion, which had been circulating, was a gross misrepresentation of the actual borrowing status.
“The reported figure of N24.33 trillion is incorrect and has caused unnecessary panic among citizens and stakeholders,” stated Ms. Patience Oniha, Director-General of the DMO. “The actual amount borrowed by the Federal Government in Q1 2024 is N7.71 trillion. We are committed to transparency and accuracy in reporting Nigeria’s debt figures.”
The erroneous figure reportedly originated from a misinterpretation of a financial report, which combined both current and projected future borrowings. The DMO emphasized that the correct figure of N7.71 trillion represents actual borrowings for the first quarter, aligned with the government’s fiscal policies and budgetary allocations.
In response to the initial reports, economic analysts and financial experts had expressed concerns over the potential impact of such high borrowing on Nigeria’s economy. However, the DMO’s clarification has provided some reassurance regarding the government’s debt management strategy.
“The clarification from the DMO is a welcome development,” said Dr Akin Ogunleye, an economist at Lagos Business School. “It is important for accurate information to be disseminated to avoid unwarranted panic. The revised figure of N7.71 trillion is more manageable within the context of Nigeria’s economic framework.”
The DMO also reiterated its commitment to maintaining sustainable debt levels and ensuring that borrowing is conducted prudently. The agency highlighted that all borrowing activities are guided by the Medium-Term Debt Management Strategy, which aims to balance the need for financing critical infrastructure and development projects with the imperative of debt sustainability.
“The Federal Government is mindful of the need to manage public debt responsibly,” Ms. Oniha added. “Our borrowing activities are carefully planned and executed to ensure that we do not compromise the country’s financial stability.”
In the wake of the clarification, the Ministry of Finance has pledged to enhance communication efforts to prevent future misinterpretations of financial data. Minister of Finance Zainab Ahmed emphasized the importance of clear and accurate reporting to maintain public trust and confidence in the government’s fiscal policies.
“As a government, we are committed to transparency and accountability,” Minister Ahmed stated. “We will take necessary steps to ensure that financial reports are communicated clearly and accurately to the public.”
The government has also urged media organizations and financial analysts to verify information from official sources before publishing reports. This, they say, will help prevent the spread of misinformation and ensure that public discourse is based on accurate data.
The clarification on Nigeria’s borrowing in Q1 2024 is expected to alleviate some of the concerns that have been raised regarding the country’s debt levels and financial health. The government remains focused on its broader economic agenda, which includes improving revenue generation, reducing fiscal deficits, and promoting sustainable economic growth.
