The Debt Management Office (DMO) on Thursday reported that Nigeria’s total public debt stock rose to N46.25 trillion (about $103.11bn) as of December 2022, representing an increase of N6.69 billion when compared to the N29.56 trillion (about $95.77 billion) as of the end of December 2021.
The DMO in a statement indicated that the debt comprised external and domestic debts of the federal and state government as well as the Federal Capital Territory (FCT).
It attributed the latest increase in the public debt to new borrowing by the federal and sub-national governments to fund budget deficits and execute capital projects as well the issuance of Promissory Notes which were used to settle some debt obligations.
The DMO expatiated: “As of December 31, 2022, the total Public Debt Stock consisting of the domestic and external total debt stock of the Federal Government and the sub-national governments (36 state governments) and the Federal Capital Territory was N46.25 trillion or USD103.11 billion. The comparative figure for December 31, 2021, was N39.56 trillion or $95.77 billion.
“In terms of composition, the total Domestic Debt Stock was N27.55 trillion (USD61.42 billion) while Total External Debt Stock was N18.70 trillion (USD41.69 billion)
“Amongst the reasons for the increase in the total public debt stock were new borrowings by the FGN and sub-national government, primarily to fund budget deficits and execute projects. The issuance of promissory notes by the FGN to settle liabilities also contributed to the growth in 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”, it added.
The DMO further explained that the debt figure in the year under review was 23.20% of the Gross Domestic Product, indicating that it is well within the limits set by both the federal government and international organisations.
In addition, it stated the total debt to gross domestic product (GDP) ratio for December 31, 2022, was 23.20 percent and indicates a slight increase from the figure for December 31, 2022 T 22.47 percent.
It further clarified that the ratio of 23.20 percent was 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 (ECOWAS).
