Nigeria’s total public debt stock is N46.25 trillion as of December 31, 2022, however, this excludes the N22 trillion indebtedness to the Central Bank of Nigeria (CBN), through Ways and Means advances.
This is according to a statement issued on Thursday by the Debt Management Office (DMO) in Abuja.
As stated by the DMO, the country’s total public debt stock included the Federal Government of Nigeria (FGN) and sub-national governments’ domestic and external debts.
Sub-national governments include the 36 state governments and the Federal Capital Territory (FCT).
As for the Ways and Means advances, they are presently awaiting securitization by the National Assembly, and can only be added to the country’s public debt after such securitization.
The comparative debt stock as of December 31, 2021, is N 39.59 trillion (95.77 billion dollars). Domestic debt totaled N27.55 trillion (61.42 billion dollars), while external debt totaled N18.70 trillion (41.69 billion dollars).
“Among the reasons for the increase in total public debt stock were new borrowings by the Federal Government and sub-national governments, primarily to finance budget deficits and execute projects.
“The issuance of promissory notes by the Federal Government to settle some liabilities also contributed to growth in the debt stock,’’ the official said.
It, however, said that ongoing efforts by the Federal Government to increase revenue from oil and non-oil sources through initiatives like the Finance Acts and the Strategic Revenue Mobilisation Initiative are expected to support debt sustainability.
“Meanwhile, the total debt-to- Gross Domestic Product (GDP) ratio for Dec. 31, 2022, was 23.20 percent. It indicates a slight increase from the figure of Dec. 31, 2021, at 22.47 percent.
“The ratio of 23.20 percent is within the 40 percent limit self-imposed by Nigeria and the 55 percent limit recommended by World Bank/International Monetary Fund (IMF).
“It is also within the 70 percent limit recommended by the Economic Community of West African States (ECOWAS),’’ it said.
