Nigeria’s debts jump by 75% from N49trn to N87trn in 3 months

The Debt Management Office has said Nigeria’s total public debt hit N87.38tn at the end of the second quarter of 2023.

The figure represents an increase of 75.29 per cent or N37.53tn compared to N49.85tn recorded at the end of March 2023.

The DMO, in a report on Thursday, said the debt includes the N22.71tn Ways and Means Advances of the Central Bank of Nigeria to the Federal Government.

The DMO stated, “Nigeria’s total public debt stock as at June 30, 2023, was N87.38tn ($113.42bn). It comprises the total domestic and external debts of the Federal Government of Nigeria, the thirty-six states, and the Federal Capital Territory.

“The major addition to the Public Debt Stock was the inclusion of the N22.712tn securitized FGN’s Ways and Means Advances.”

The statement also noted that other additions to the debt stock were new borrowings by the Federal Government and the sub-nationals from local and external sources.

It added, “The reforms already introduced by the present administration and those that may emerge from the recommendations of the Fiscal Reform and Tax Policies Committee, are expected to impact debt strategy and improve debt sustainability.”

The DMO had earlier projected that Nigeria’s public debt burden may hit N77tn following the National Assembly’s approval of the request by former President Muhammadu Buhari to restructure the CBN’s Ways and Means Advances.

The Ways and Means Advances is a loan facility through which the CBN finances the shortfalls in the government’s budget.

The Director-General of the DMO, Patience Oniha, during a public presentation of the 2023 budget organised by the former Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, noted that the debt would be N70tn without N5tn new borrowing and N2tn promissory notes.

However, the latest data showed that the current debt stock of N87.38tn exceeded the DMO’s projection by N10.38tn.

Further breakdown showed that Nigeria has a total domestic debt of N54.13tn and total external debt of N33.25tn.

While the domestic debt makes up 61.95 per cent of total debt, the external makes up 38.05 per cent.