Nigeria’s total debt stock rises 14% to N46.25trn in 2022

By Business A.M.

Nigeria’s debt stock, comprising the domestic and external debt stocks of the federal government,sub-national governments and the Federal Capital Territory, surged in the fourth quarter of 2022 to N46.25 trillion or $103.11 billion, according to a latest figure by the Debt Management Office (DMO).

The new figure by the DMO, represents a 14.46 per cent increase against N39.56 trillion or $95.77 billion recorded in the corresponding period of December 31,2021.

A statement issued by the debt office noted that in terms of composition, total domestic debt stock stood at N27.55 trillion or $ 61.42 billion, while total external debt was N18.70 trillion $ 41.69 billion.

According to the DMO the increase in the total public debt was driven by new borrowings by the federal and sub-national governments, primarily to fund budget deficits and execute projects.It also attributed the issuance of promissory notes by the federal government to settle some liabilities as a contributor to the growth in the debt stock.

However, the DMO pointed out that 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.

The statement further showed that the total public debt to gross domestic product (GDP) ratio for December 31, 2022, was 23.20 per cent and indicates a slight increase from the figure for December 31, 2022, at 22.47 percent.

The DMO also stated that 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 (IMF), and the 70 per cent limit recommended by the Economic Community of West African States (ECOWAS).