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HomeTop NewsNigeria's debt stock rises 20.5% y/y to N39.6 trln in Dec 2021...

Nigeria’s debt stock rises 20.5% y/y to N39.6 trln in Dec 2021 ~DMO

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By Oludare Mayowa


Nigeria’s total public debt stock rose to N39.66 trillion at the end of December 2021, compared with N32.91 trillion a year earlier, according to the Debt Management Office (DMO), indicating 20.51 percent year-on-year increase.

The debt office in its latest debt report published on Thursday showed that the country’s debt stock grew 4.36 percent within the three months to December 2021 when the nation’s borrowing stood at N38 trillion.

“The amount represents the total external and domestic debts of the Federal Government of Nigeria (FGN), 36 state governments and the federal capital territory,” according to a statement by the DMO on Thursday.

The stated showed that the public debt stock for December 31, 2021, includes new borrowings by the Federal Government and the sub-nationals.

The debt office said it would be recalled that the 2021 appropriation and supplementary acts, included total new borrowings (from domestic and external sources) of N5.49 trillion to part-finance the deficit.

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“Borrowings for this purpose and disbursements by the multilateral and bilateral creditors account for a significant portion of the increase in the debt stock. Increases were also recorded in the debt stock of the states and the FCT,” the debt office stated.

The debt office said “new borrowings were raised from diverse sources, primarily through the issuances of the Eurobonds, Sovereign Sukuk and FGN Bonds. These capital raisings were utilized to finance capital projects and support economic recovery.

With the Total Public Debt Stock to Gross Domestic Product (GDP) as at December 31, 2021, of 22.47 percent, the Debt-to-GDP ratio still remains within Nigeria’s self-imposed limit of 40 percent.

“This ratio is prudent when compared to the 55 percent limit advised by the World Bank and the International Monetary Fund (IMF) for countries in Nigeria’s peer group, as well as, the ECOWAS Convergence Ratio of 70 percent,” the debt office stated.

The debt office said the Federal Government is mindful of the relatively high Debt-to-Revenue Ratio and has initiated various measures to increase revenues through the Strategic Revenue Growth Initiative and the introduction of Finance Acts since 2019.

A breakdown of the debt figure showed that the country borrowed a total of N23.70 trillion from domestic debt market, while external borrowing stood at  N15.85 trillion or $38.39 billion.


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