Nigeria’s debt stock rose to a new high in the fourth quarter of 2022, hitting N46.25 trillion or $103.11 billion, figures from the Debt Management Office have shown. That was a N2.19 trillion increase from the figure that was recorded in the third quarter (Q3) of 2022.
The new data include the domestic and external total debt stocks of the federal government, and the 36 sub-national governments and the Federal Capital Territory.
The Nigerian Observer notes that the N23.77 trillion Central Bank of Nigeria’s ‘Ways and Means’ borrowing to the federal government are not included in the computation of the debt stock.
The federal government had approached the National Assembly to approve the securitization of the ‘Ways and Means’, a request the lawmakers refused to grant.
In terms of composition, total domestic debt stock was N27.55 trillion ($ 61.42 billion) while total external debt was N18.70 trillion ($ 41.69 billion). The comparative figure for December 31, 2021, is N39.56 trillion or $95.77 billion.
The debt office gave reasons for the increase in the total public debt to include new borrowings by the federal and sub-national governments, primarily to fund budget deficits and execute projects.
The issuance of promissory notes by the federal government to settle some liabilities also contributed to the growth in the debt stock.
On-going efforts by the government to increase revenues from oil and non-oil sources through initiatives such as the Finance Act 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 percent and indicates a slight increase from the figure for December 31, 2022, at 22.47 percent.
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, and, the 70 percent limit recommended by the Economic Community of West African States.
