DMO Reveals Nigeria’s Public Debt Hit N46 Trillion In Q4 Of 2022

The Debt Management Office (DMO) disclosed that Nigeria's total public debt has reached N46.25 trillion in the fourth quarter (Q4) of 2022.

This debt consists of domestic and external debt stocks on the federal government of Nigeria (FGN) and the subnational governments, which include 36 states and the federal capital territory (FCT).

The debt stock was compared with Dec. 21, 2021, which was N39.56 trillion. It means that there has been an increase of N6.69 trillion comparatively. The 2022 report showed an increase of almost N2 trillion, in comparison to third quarter of the same year, which was N44.6 trillion.

"In terms of composition, total domestic debt stock stood at N27.55 trillion, while total external debt stock was N18.70 trillion," DMO mentioned in the statement issued on their official website. "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 statement also revealed that "the issuance of promissory notes by the federal government to settle some liabilities also contributed to growth in the debt stock."

However, the agency shared that the federal government's ongoing efforts will help to increase the revenue, generating from oil and non-oil sources. This will eventually bring sustainability to the debt.

"The ratio of 23.20 percent is within the 40 percent limit self-imposed by Nigeria and the 55 percent limit recommended by the World Bank/International Monetary Fund (IMF)," the government agency explained. "It is also within the 70 percent limit recommended by the Economic Community of West African States (ECOWAS)."

According to multiple sources, Federal Minister of Finance, Budget and Planning of Nigeria Zainab Ahmed said last year that the government would borrow more in order to finance the budget deficit in 2023.

Earlier this year, President of Nigeria Muhammadu Buhari signed an appropriation bill of N21.83 trillion into law alongside signing the 2022 supplementary appropriation bill of N819 billion.

The president's spokesperson Femi Adesina issued a statement in January, which mentioned that the government has examined the changes made by the national assembly to the 2023 executive budget proposal.

"The amended fiscal framework for 2023 as approved by the national assembly shows additional revenues of N765.79 billion, and an unfunded deficit of N553.46 billion," the statement mentioned, TheCable reported. "It is clear that the national assembly and the executive need to capture some of the proposed additional revenue sources in the fiscal framework. This must be rectified."

It continued. "I have also noted that the national assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion."

Nigeria is currently going through a major economic crisis since demonetization, which mopped over 70 percent of the liquid money in the country.

Nigeria Labour Congress (NLC) planned to go on a nationwide strike over cash shortage in the market. However, the strike was later suspended after a meeting held in Abuja on Tuesday.