The Debt Management Office (DMO) has revealed that Nigeria’s debt profile stood at N46.25 trillion as of December 2022.
In a statement on Thursday, DMO said there was an increase of over N7tr from what the country owned in 2021.
“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 $103.1bn. The comparative figure for December 31, 2021, is N39.5tr or $95.77bn.”
“In terms of composition, Total Domestic Debt Stock was N27.55tr ($61.42bn) while total external debt stock was N18.7tr ($41.6bn).
It stated that the reasons for the increase in the Total Public Debt Stock were New borrowings by the Federal Government 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.”
It, however, said the 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% and indicates a slight increase from the figure for December 31, 2022, at 22.47%. The ratio of 23.20% is within the 40% limit self-imposed by Nigeria, the 55% limit recommended by the World Bank/International Monetary Fund, and, the 70% limit recommended by the Economic Community of West African States.”
