Nigeria’s debt hits N46.25trn amidst new borrowings, budget deficits

Nigeria’s total public debt stock has risen to N46.25 trillion ($103.11 billion) as at December 31, 2022, the Debt Management Office (DMO) on Thursday, March 30 revealed.

In terms of composition, Total Domestic Debt Stock was N27.55 trillion ($61.42 billion) while Total External Debt Stock was N18.70 trillion (USD 41.69 billion).

The country had piled up additional N6.69 trillion debt in 2022 as the comparative figure for December 31, 2021, is N39.56 trillion ($95.77 billion).

The total public debt stock consists of the Domestic and External Debt Stocks of the Federal Government of Nigeria (FGN) and the subnational governments (36 state governments and the Federal Capital Territory).

The DMO explained that amongst the reasons for the increase in the Total Public Debt Stock were New Borrowings by the Federal Government and sub-national governments, primarily to fund budget deficits and execute projects.

It added that the issuance of Promissory Notes by the FGN to settle some liabilities also contributed to the growth in the Debt Stock.

The agency stated that the on-going efforts by the Government to increase revenues from oil and non-oil sources through initiatives such as the Finance Acts and the Strategic Revenue Mobilization initiative are expected to support debt sustainability.

Meanwhile, the Total Public Debt to Gross Domestic Product (GDP) ratio for December 31, 2022, was 23.20% and indicates a slight increase from the figure for December 31, 2022, at 22.47%.

DMO noted that the ratio of 23.20% is within the 40% limit self-imposed by Nigeria, the 55% limit recommended by the World Bank/International Monetary Fund, and, the 70% limit recommended by the Economic Community of West African States.

The Star