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Naira Devaluation Raises Foreign Debt By N30tn — Report

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Naira devaluation raised Nigeria’s external debt by about “N30.03tn” between 2023 and June 2024 when considered in naira terms, an analysis by The Punch revealed.

Despite a reduction in the country’s debt when measured in US dollars, the exchange rate shift has made Nigeria’s foreign obligations far more costly in local currency.

Data from the Debt Management Office shows that as of June 1, 2023, Nigeria’s external debt stood at “$43.16bn.”

At an exchange rate of “N770.38” to the dollar, this amounted to “N33.25tn.” However, by June 1, 2024, the naira had depreciated by 47.6 percent, with the exchange rate rising to “N1,470.19” to the dollar.

As a result, Nigeria’s external debt, which has dropped to “$42.90bn,” is now equivalent to “N63.07tn.”

In dollar terms, Nigeria’s external debt dropped by 0.60 per cent or “$258.18m” between June 2023 and the same month of 2024.

However, in naira terms, there was an increase of 89.7 percent or “N29.82tn” within the same period.

The Punch further observed that if the June 2023 exchange rate (“N770.38/$1”) had been used, Nigeria’s external debt would have been “N33.05tn.”

This further shows that the naira devaluation added “N30.02tn” to Nigeria’s external debt in one year as the country battles currency weakness and rising total debt.

While the nominal value of Nigeria’s external debt in dollar terms has remained relatively stable, the depreciation of the local currency has caused a steep rise in the naira equivalent.

The Punch further observed that external debt accounted for 46.96 per cent of Nigeria’s total debt by June 2024, up from 38.05 per cent recorded in the same month last year.

Further analysis by The Punch showed that Multilateral lenders remain Nigeria’s largest external creditors, accounting for over half of the country’s external debt (50.41 per cent or “$21.62bn”) as of June 2024.

These creditors include the International Monetary Fund, the World Bank Group, the African Development Bank Group, and the Islamic Development Bank, among others.

Nigeria owes “$1.61bn” to the IMF, making up 3.75 percent of the total external debt.

The World Bank’s share of Nigeria’s debt totals “$16.32bn,” with the majority owed to the International Development Association, which accounts for “$16.32bn,” which represents 38 per cent of Nigeria’s total external debt.

The International Bank for Reconstruction and Development, another arm of the World Bank, is owed “$484.0m,” or 1.13 percent.

Nigeria’s debt to the AfDB group is “$3.87bn,” representing 9.03 percent of the total external debt.

This includes “$1.63bn” to the African Development Bank and “$991.89m” to the African Development Fund.

Nigeria owes “$4.97m” to Arab Bank for Economic Development in Africa, a negligible amount relative to the total, at 0.01 percent.

Debt to the European Development Fund totals “$30.72m,” or 0.07 percent of Nigeria’s external debt.

Nigeria’s debt to the IsDB stands at “$241.84m,” or 0.56 percent of the total debt, while Nigeria’s debt to the International Fund for Agricultural Development is “$273.51m,” which is 0.64 per cent of the external debt stock.

Bilateral Creditors, such as China and France, have provided Nigeria with “$5.89bn” (13.72 percent of total external debt) in credit financing.

China is Nigeria’s largest bilateral creditor, with “$5.07bn” owed to the Exim Bank of China, and this constitutes 11.83 percent of the total external debt.

Nigeria owes “$623.55m” to France (Agence Française de Développement), or 1.45 per cent of the total external debt, and “$52.18m” to Japan (Japan International Cooperation Agency), representing 0.12 percent.

The country’s debt to India (Exim Bank of India) is “$22.35m,” or 0.05 percent, and to Germany (Kreditanstalt für Wiederaufbau) “$115.81m,” or 0.27 percent of total external debt.

Commercial creditors, primarily through Eurobonds, form a significant portion of Nigeria’s external debt.

Nigeria owes “$15.12bn” in Eurobonds, accounting for 35.24 per cent of the total external debt.

The Eurobond debt is expected to increase by the end of the year, as Nigeria recently raised “$2.2bn” from its latest Eurobond auction.

Nigeria also has smaller debts to various syndicated loans and financial institutions. For instance, “$270m,” or 0.63 per cent of the total external debt, is owed to a syndicate of banks.

The Punch earlier reported that Nigeria’s external debt might rise to “$45.1bn” by the end of 2024 as the Federal Government planned to secure additional external funding.

The Debt Management Office revealed in its latest report that the country’s external debt stock increased by “$780m” in the second quarter of 2024, growing from “$42.12bn” in March to “$42.9bn” as of June 2024.

In a related development, the Federal Executive Council approved a “$2.2bn” external borrowing plan as part of the Federal Government’s 2024 Appropriation Act financing programme.

Although the borrowing plan included a combination of Eurobond and Sukuk offerings, valued at “$1.7bn” and “$500m,” Nigeria has raised the entire “$2.2bn” from its latest Eurobond auction out of over “$9bn” subscriptions.

Justifying the borrowing, the Minister of Finance, Wale Edun, said the external financing initiative aligned with the administration’s broader economic recovery plan, which focused on stabilising macroeconomic conditions, adjusting market pricing for foreign exchange and petroleum products, and supporting local production.

He added that earlier in the year Nigeria’s successful domestic issuance of dollar bonds highlighted the growing resilience and sophistication of the country’s financial market, attracting both local and international investors who showcased confidence in the Federal Government’s economic reform agenda.

BIG STORY

NSA Ribadu Tells Canada To “Go To Hell” For Denying Military Chiefs Visas

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In a significant diplomatic snub, Canada has refused to grant visas to Nigeria’s Chief of Defence Staff (CDS), Gen. Christopher Musa, and several other senior military officers for an official event. Speaking on Thursday, February 13, 2025, at the first annual lecture of the National Association of the Institute for Security Studies (AANISS) in Abuja, National Security Adviser (NSA) Nuhu Ribadu voiced his dissatisfaction, telling Canada “to go to hell.”

The officials were scheduled to participate in a ceremony in Canada honoring war veterans, but only a part of the delegation was granted visas, sparking strong reactions from Nigerian authorities.

Ribadu and Musa discussed the matter at the inaugural lecture of the Alumni Association of the National Institute for Security Studies (AANISS). The event, attended by security experts and government officials, highlighted national security and international collaboration.

Ribadu labeled the visa denial as disrespectful, while Musa stressed that Nigeria needs to assert itself internationally and no longer be taken lightly. Musa reflected on how his team had been invited to the veterans’ event, only to be hit with an unexpected setback when some members of the delegation were denied entry. He viewed the incident as a reminder for Nigeria to bolster its independence and strength.

He stated, “Every disappointment is a blessing. Yesterday, I was meant to be in Canada for an event to honor our veterans… half of us have gone, and half have been denied. It’s very disappointing. It’s a clear reminder that the country must stand on its own, stand strong as a nation, and should no longer be taken for granted.”

Ribadu commended Musa for his leadership in tackling security issues and underscored the importance of national advancement. He remarked, “Thank you for having the courage to say Canada denied you visas. They can go to hell. Even though it’s painful and disrespectful, we are peaceful and strong, and I agree with you that it is time to fix our country.”

The visa rejection raises concerns about Canada’s position on Nigerian military officials and its broader diplomatic relationship with Nigeria. While the exact reasons for the denial remain unclear, the incident has shed light on the bureaucratic and political obstacles Nigerian officials face in international dealings.

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Gbenga Adeyinka D’1st Gears Up For Laffmattazz “About Time World Tour”

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Iconic Nigerian comedian, Gbenga Adeyinka D’1st, is set to embark on a global comedy tour, bringing laughter and excitement to fans around the world.

The Laffmattazz tagged “About Time World Tour” promises to be an unforgettable experience, featuring Gbenga Adeyinka D’1st’s unique brand of comedy and other amazing comedians.

The tour will kick off in Nigeria, with shows in Ibadan, Akure, Abeokuta, and Lagos.

From there, Gbenga Adeyinka D’1st will take his comedy to the global stage, performing in the UK, Canada, and the USA.

“We are thrilled to announce the Laffmattazz World Tour, which promises to be an epic comedy experience,” said Gbenga Adeyinka D’1st.

When asked what his fans should expect, Gbenga Adeyinka D’1st said “We have an amazing lineup of shows planned, and we can’t wait to bring laughter and joy to our fans around the world.”

The Laffmattazz World Tour is set to be a hilarious and entertaining experience, featuring Gbenga Adeyinka D’1st’s signature comedy style, which blends humor, storytelling, and audience interaction.

For more information on the Laffmattazz World Tour, including tour dates, venues, and ticket information, follow us on social media @gbengaadeyinka1stgcon @Laffmattazz_ga1st

Join the conversation on social media using the hashtag #LaffmattazzWorldTour.

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Our Matriarch Has Returned To Her Creator

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With a heavy heart and complete submission to the will of Almighty Allah, we announce the passing of our beloved mother, Mrs Mojisola Norinatu Adebayo Nee Adelakun who departed this world on the evening of Tuesday, February 11, 2025.

Fondly known as Iya Wale, she lived a remarkable 68years filled with love, kindness, and wisdom. She was a pillar of strength who taught us patience, tolerance, and, above all, the true essence of love. Her presence touched many lives, and her legacy of compassion will forever remain in our hearts.

Though my siblings and I deeply mourn her loss, we take solace in the knowledge that she has returned to her Creator. In accordance with Islamic rites, she was laid to rest on Wednesday, February 12, 2025.

As we reflect on her impactful life, the family will hold the 8th Day Fidau prayers next week to honor her memory. We kindly ask for your prayers and support during this difficult time.

May Allah grant her eternal rest and admit her into Al-Jannah Firdaus.

 

Dr. Abiola Adebayo

For the Family

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