- Advertisement -spot_img
33.2 C
HomeTop NewsNigeria's total debt rises 17% to N46.25 trln Dec vs N39.56 trln...

Nigeria’s total debt rises 17% to N46.25 trln Dec vs N39.56 trln in Sept 2022 ~DMO

- Advertisement -spot_img

By Oludare Mayowa

Nigeria’s total public debt rose to N46.25 trillion at the end of last year from N39.56 trillion at the end of September 2022, the Debt Management Office (DMO) said on Thursday in its latest debt report.

According to the latest report, Nigeria grew its total debt by 16.91 percent in the three months to December 31, 2022.

The DMO stated that “In terms of composition, total domestic debt stock was N27.55 trillion ($61.42 billion) while total external debt stock was N18.70 trillion ($41.69 billion).”

The debt office attributed the increase in total debt to new borrowing by both the federal government and states to finance budget deficits.

Analysts said despite the surging public debt, the outgoing administration continued to ramp up borrowing to fund its budget deficit in the face of declining revenue.

The debt figure consists of borrowing by the federal government, states, and the federal capital territory in the period under review.

Nigeria’s debt-to-GDP ratio stood at 23.2 percent in 2022, compared with 22.47 percent in 2017, within the country’s self-imposed limit of 40 percent, the DMO said.

The DMO Director General had in January said the country’s debt could hit N77 trillion in 2023 if the National Assembly approved the presidential request to securitize the ways and means of borrowing from the Central Bank of Nigeria (CBN), coupled with new borrowings to fund the 2023 budget.

READ ALSO: The role of Nigerian youth during 2023 general election

As of December 31, 2022, the total public debt stock, consisting of the domestic and external debt stocks of the Federal Government of Nigeria (FGN) and the sub-national governments (the 36 state governments and the Federal Capital Territory), was N46.25 trillion, or USD103.11 billion. The comparative figure for December 31, 2021, is N39.56 trillion, or USD95.77 billion.

“In terms of composition, total domestic debt stock was N27.55 trillion (USD 61.42 billion), while total external debt stock 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.

“Meanwhile, the total public debt to gross domestic product (GDP) ratio for December 31, 2022, was 23.20 percent and indicated 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,: the DMO said in a statement on Thursday.

(omayowa@globalfinancialdigest.com; Newsroom +234 8033 964 138)

Join Our Mailing List!

* indicates required
- Advertisement -spot_img
- Advertisement -spot_img
Must Read
Related News
- Advertisement -spot_img