Business

Nigeria’s debt increases to N31tr

Published

5 years ago

September 10, 2020

Nigeria’s total debt stock has risen in the last three months to N31.009 trillion ($85.897 billion), from N28.628 trillion ($79.303billion), according to the Debt Management Office (DMO).

DMO on Wednesday in Abuja’s new total debt figure comprises the debt stock of the Federal Government, the 36 states, and the Federal Capital Territory (FCT).

The N2.381trillion (or $6.593 billion) increase recorded in the debt Stock, the DMO said, “was accounted for by the $3.36 billion Budget Support Loan from the International Monetary Fund (IMF).”

Other contributors to the nation’s growing debt profile include “New Domestic Borrowing to finance the Revised 2020 Appropriation Act, the issuance of the N162.557 billion Sukuk and Promissory Notes issued to settle Claims of Exporters”.

The DMO has also warned that it expects the Public Debt Stock to grow. “The nation’s debt will grow because of “the balance of the New Domestic Borrowing and expected disbursements are made by the World Bank, African Development Bank and the Islamic Development Bank, which were arranged to finance the 2020 Budget”.

The DMO said more Promissory Notes would be issued later, adding: “This and new borrowings by state governments are also expected to increase the Public Debt Stock”.

It will be recalled that the 2020 Appropriation Act had to be revised in the face of the adverse and severe impact of COVID-19 on the Government’s Revenues and increased expenditure needs on health and economic stimulus, amongst others.

As a result of these borrowings from multilateral financial institutions, the federal government will be compelled to meet some stringent conditionalities like the removal of petroleum products subsidy, adjusted electricity tariffs, currency value adjustments and the IMF auditing of the books of the Central Bank of Nigeria (CBN).

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Business

NEXIM Bank Secures Bbb+ Rating from Agusto & Co., Declares ₦30.47 Billion Operating Profit

Published

4 days ago

October 2, 2025

The Gleamer

By Joel Ajayi

The Nigerian Export-Import Bank (NEXIM) has been assigned a Bbb+ rating by leading credit rating agency Agusto & Co. Limited, affirming its satisfactory financial condition and strong capacity to meet obligations relative to other development finance institutions (DFIs) in Nigeria.

For the year ended 2024, NEXIM Bank reported an operating profit of ₦30.47 billion, more than double the ₦13.75 billion recorded in the previous year. This remarkable growth underscores the Bank’s financial resilience and operational efficiency.

Established to promote Nigeria’s non-oil exports and support import-substituting businesses, NEXIM is fully owned by the Federal Government of Nigeria through equal shareholding by the Central Bank of Nigeria (CBN) and the Ministry of Finance Incorporated (MOFI).

The Bank has sustained strong liquidity and capital adequacy ratios, alongside notable growth in its loan book and equity investments. Key sectors supported include manufacturing, agriculture, solid minerals, and services.

According to Managing Director, Mr. Abba Bello, NEXIM has intensified its intervention in the non-oil export sector, disbursing over ₦495 billion and facilitating the creation and sustenance of more than 36,000 direct and indirect jobs.

Among the Bank’s key initiatives are:The Regional Sealink Project: A public-private partnership designed to improve maritime logistics across West and Central Africa. Promotion of Factoring Services: Offering alternative export financing solutions for SMEs. And Joint Project Preparation Fund (JPPF): Implemented in partnership with Afreximbank to enhance the bankability of export projects.

Additionally, NEXIM is developing tailored financing schemes for the mining sector, including Contract Mining, Equipment Leasing, and Buyers’ Credit/ECA Financing, aimed at unlocking export potential and boosting foreign exchange earnings.

With its renewed drive, NEXIM Bank remains committed to building local processing capacity, advancing Nigeria’s competitiveness in global trade, and strengthening non-oil export revenues by moving up the commodity value chain.

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