Nigeria’s Debt Increases 17% to N46.26trn

Nigeria’s total public debt accelerated by about 17% to N46.25 trillion, an amount which is equivalent to $103.1 billion in 2022, according to Debt Management Office’s (DMO) latest report.

In absolute terms, this represents an increase of N6.69 trillion annual growth when compared with N39.56 trillion debt stock reported in 2021 as the government ramped up borrowing to fund its budget deficit.

Nigeria’s debt-to-gross domestic product (GDP) ratio stood at 23.2% in 2022, compared with 22.47%, trending within the country’s self-imposed limit of 40%, the DMO said in the statement released today.

In terms of composition, Nigeria’s debt agency explained that total domestic debt stock was N27.55 trillion or $61.42 billion, while total foreign debt stock settled at N18.70 trillion or $41.79 billion.

DMO said the increase in total debt was driven by new borrowings by the Federal government and sub-nationals to finance its activities – budget deficits and projects. For about 8 years, Nigeria has maintained borrowings from local and international debt capital markets.

Nigeria’s total public debt could rise to N77 trillion this year, the head of the DMO, Patience Oniha, said in January, if parliament grants approval for a central bank temporary advance to the government to be swapped to bonds coupled with new borrowings to fund the 2023 budget.

DMO said efforts by the government to increase revenue from oil and non-oil sources through initiatives such as finance acts and strategic revenue mobilization initiatives are expected to support debt sustainability. #Nigeria’s Debt Increases 17% to N46.26trn

The increase in total debt value has been worsened by persistent depreciation of the local currency, the naira, across the foreign exchange markets peppered by low accretion into external reserves.