DEBT RESTRUCTURE — DMO says Nigeria not at risk of debt distress

Nigeria’s Total Public Debt Hits N46.25trn

Elizabeth Christopher

Last updated Apr 3, 2023

Nigeria’s total debt at the end of December, 2022, stood at N46.25 trillion.

This was contained in the country’s total public debt stock report released by the Debt Management Office and obtained by Voice of Nigeria.

According to the report “As at December 31, 2022, the Total Public Debt Stock consisting of the Domestic and External Debt Stocks of the Federal Government of Nigeria (FGN) and the sub- national governments (the thirty-six (36) State Governments and the Federal Capital Territory} was N46.25 trillion or USD103.11 billion. The comparative figure for December 31, 2021, is N39.56 trillion or USD95.77 billion.”

“In terms of composition, Total Domestic Debt Stock was N27.55 trillion (USD 61.42 billion) while Total External Debt Stock was N18.70 trillion (USD 41.69 billion).”

“Amongst the reasons for the increase in the Total Public Debt Stock were New Borrowings by the FGN and sub-national governments, primarily to fund Budget Deficits and execute projects. The issuance of Promissory Notes by the FGN 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 Acts 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% and indicates a slight increase from the figure for December 31, 2022, at 22.47%. The ratio of 23.20% is within the 40% limit self-imposed by Nigeria, the 55% limit recommended by the World Bank/International Monetary Fund, and, the 70% limit recommended by the Economic Community of West African States.”

The report indicated that Lagos State recorded the highest domestic debt as of the end of Q4 2022 with N807.21bn; this was followed by Delta State with N304.25bn and Ogun State with N270.45bn.

On the other hand, the lowest debt was recorded by Jigawa State with N43.95bn, followed by Kebbi State and Katsina State with N61.31bn and N62.37bn, respectively.

In the states’ debt profile breakdown, Abia, Adamawa, Akwa Ibom and Anambra owed N103.7bn, N124bn, N219.2bn and N77.4bn, respectively, while Bauchi, Bayelsa, Benue, Borno borrowed N143.6bn, N146.3bn, N141.3bn, N96.1bn respectively.

Other debtor states are Cross-River; N197.2bn, Ebonyi; N76.4bn, Edo; N110.5bn, Ekiti; N117.1, Enugu; N91.8bn, Gombe; N139.3bn, Imo; N204.2bn, Kaduna; N83.3bn, Kano; N122.3bn, Kogi; N93.6bn, Kwara; N109.3bn, Nasarawa; N71.4bn, Niger; 95.5bn, Ondo; N77.1bn, Osun; N148.3bn.

Oyo, Plateau, Sokoto, Taraba, Yobe, Zamfara and FCT had N161.1bn, N149bn, N90.5bn, N87.9bn, N90.7bn, N112.1bn and N81bn respectively.

However, the DMO said, the domestic debt stock for Rivers State was for September 30, 2021, and figures for Katsina and Taraba states were for September 30, 2022.

Punch/Hauwa Abu

Debt Domestic debt