Nigeria’s total public debt increased to N46.25 trillion (US$10.311 billion) in December 2022. It has basically gone up to N6.69 trillion (14.46%) from N39.56 trillion in December 2021. The Debt Management Office said in a statement on Thursday that the figures represent the federal, 36 state and federal Federal Capital Territory’s domestic and foreign debt.
According to the breakdown of figures, domestic debt, all debt issued in the domestic market was N27.55 trillion. On the other hand, external debt, debt issued on the international market, reached N18.70 trillion.
The DMO indicated that the increase in total public debt was also related to new borrowings by the FG and state governments, primarily to finance the budget deficit and implement projects.
The office said the FGN’s issuing promissory notes to settle some debts also contributed to the increase in debt outstanding.
To pay off the debt, the DMO said government efforts were underway to increase revenues from oil and other wells. These efforts, driven by initiatives such as Treasury bills and the Strategic Revenue Mobilization Initiative, are expected to support debt sustainability.
As of December 31, 2022, the debt to gross domestic product ratio is 23%, up from 22.47% in 2021.
DMO added that the country is still within the voluntarily imposed 40% threshold. This figure is below the 55% threshold recommended by the World Bank’s International Monetary Bank.
The DMO statement partly read,
“As of December 31, 2022, the Total Public Debt Stock was N46.25 trillion or USD103.11 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)”.
cc: Daily Post Ng
