Nigeria’s public debt set to peak at N45tn in 2022

The total debt stock of Nigeria is likely to reach N45 trillion as the Debt Management Office (DMO) plans to borrow additional N6.39 trillion to finance the 2022 budget deficit.

This is according to a DMO document obtained by our correspondent on Friday in Abuja.

In the document, Patience Oniha, Director-General of the DMO, explained that the overall deficit in the 2022 budget was N6.30trillion, representing 3.46 per cent of the country’s Gross Domestic Product (GDP).

Our correspondent recalls that the DMO had earlier revealed that the country’s total debt stock as at December, 2021 was N39.55trillion.

Oniha said that the budget deficit was to be financed mainly by borrowings from both domestic and foreign sources, as well as privatisation proceeds.

“N2.57 trillion will come from domestic sources, N2.57trilllion from foreign sources, N1.16trillion from multilateral and bilateral loan drawdowns and N90.7billion from privatisation proceeds,” she said.

The DG said that the 2022 aggregate Federal Government spending was projected at N17.1 trillion, which is 18 per cent higher than the 2021 budget.

“Recurrent (non-debt) spending, estimated to amount to N6.9 trillion, is 40 per cent of total expenditure and 20 per cent higher than the 2021 budget.

“Aggregate capital spending of N5.96 trillion is 35 per cent of total expenditure,” she said.

She added that debt service in the 2022 budget was N3.6 trillion, making it 21 per cent of total expenditure and 34 per cent of total revenue.

“Provision to retire maturing bonds of N270.7billion to local contractors is 1.6 per cent of total expenditure.

“This provision is in line with the Federal Government’s commitment to offset accumulated arrears of contractual obligation dating back over a decade,” she said.