Nigeria’s debt stock hits N46trn, as debt-to- GDP remains within limits

Nigeria’s total public debt stock as at Dec.31, 2022 stands at N46.25 trillion (103.11 billion dollars).

This is according to a statement issued by the Debt Management Office (DMO) in Abuja on Thursday.

The DMO said the total public debt stock of the country consisted of the domestic and external debts of the Federal Government of Nigeria (FGN) and the sub-national governments.

The sub-national are the 36 state governments and the Federal Capital Territory (FCT).

Our correspondent reports that the comparative debt stock for Dec. 31, 2021 is N39.59 trillion (95.77 billion dollars)

The DMO said in terms of composition, total domestic debt stock stood at N27.55 trillion (61.42 billion dollars), while total external debt stock was N18.70 trillion (41.69 billion dollar).

“Among the reasons for the increase in total public debt stock were new borrowings by the Federal Government and sub-national governments, primarily to finance budget deficits and execute projects.

“The issuance of promissory notes by the Federal Government to settle some liabilities also contributed to growth in the debt stock,” he office said.

It, however, said that on-going efforts by the Federal Government to increase revenue from oil and non-oil sources through initiatives like the Finance Acts and the Strategic Revenue Mobilisation Initiative are expected support debt sustainability.

“Meanwhile, the total debt-to- Gross Domestic Product (GDP) ratio for Dec. 31, 2022 was 23.20 per cent. It indicates a slight increase from the figure of Dec. 31, 2021 at 22.47 per cent.

“The ratio of 23.20 per cent is within the 40 per cent limit self-imposed by Nigeria and the 55 per cent limit recommend by World Bank/International Monetary Fund (IMF).

“It is also within the 70 per cent limit recommend by the Economic Community of West African States (ECOWAS),” it said.

Our corresppndent reports that the total public debt stock as released by DMO excludes the N22 trillion Federal Government’s indebtedness to the Central Bank of Nigeria (CBN), through Ways and Means advances.

The Ways and Means advances are presently awaiting securitisation by the National Assembly, and can only be added to the country’s public debt after such securitisation.