The Debt Management Office (DMO), yesterday, said Nigeria’s total public debt rose to N46.25 trillion at the end of the fourth quarter (Q4) of 2022.
The amount comprises domestic and external debt stocks of the Federal Government, the 36 states and the Federal Capital Territory (FCT).
In a statement, the DMO said the comparative debt stock for December 31, 2021, was N39.56 trillion, an increase of N6.69 trillion when compared with the Q4, 2022 figure.
The 2022 data is also an increase of about N2 trillion compared to the N44.6 trillion recorded in the third quarter of the same year.
DMO attributed the rise in debt stock to new borrowings by the FGN and sub-national governments (states), primarily to fund budget deficits and execute projects.
It added that the issuance of promissory notes by the Federal Government to settle liabilities also contributed to the growth of the domestic debt.
The statement reads in part: “In terms of composition, total domestic debt stock stood at N27.55 trillion, while total external debt stock was N18.70 trillion.
“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.”
It noted that ongoing efforts by the federal government to increase revenue from oil and non-oil sources through initiatives like the finance act and the strategic revenue mobilisation initiative are expected to support debt sustainability.
The DMO continued: “Meanwhile, the Total Public Debt to Gross Domestic Product (GDP) ratio for December 31, 2022, was 23.20% 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,”
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.
