Nigeria’s Debt Profile Hit N46.25trn

Nigeria’s Debt Profile Hit N46.25trn

The fourth quarter of 2022 saw an increase in Nigeria’s debt stock, reaching N46.25 trillion ($103.11 billion), according to the most recent data released by the Debt Management Office (DMO) on Thursday.

The Federal Government, 36 State Governments, and the Federal Capital Territory all had debt stocks, both internal and external, according to DMO (FCT).

In addition, the statement said that the overall stock of domestic debt was N27.55 trillion (USD 61.42 billion), while the whole stock of overseas debt was N18.70 trillion (USD 41.69 billion).

Amongst the reasons for the increase in the total public debt stock were new borrowings by the FGN and sub-national governments, primarily to fund budget deficits and execute projects.

“The issuance of Promissory Notes by the FGN to settle some liabilities also contributed to the growth in the debt stock.

“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, ” it reads.

The statement showed that the total public debt to Gross Domestic Product (GDP) ratio for December 31, 2022, was 23.20 percent and indicates a slight increase from the figure for December 31, 2022, at 22.47 percent.

“The ratio of 23.20 percent is within the 40 percent limit self-imposed by Nigeria, the 55 percent limit recommended by the World Bank/International Monetary Fund, and the 70 percent limit recommended by the Economic Community of West African States,”it stated.

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