Nigeria’s total debt rises to N39.56tn- DMO

The Debt Management Office (DMO) has published Nigeria’s total public debt’s stock as at 31 December 2021.

According to DMO Nigeria’s total public debt as at 31 December 2021 was N39.556 trillion or USD95.779 billion. The amount represents the Total External and Domestic Debts of the Federal Governments of Nigeria, 36 States Governments and the Federal Capital Territory. The comparable figure for December 31, 2020, was N32.915 trillion or USD86.392 billion.

The Public Debt Stock for December 31, 2021, includes New Borrowings by the FGN and the sub-nationals. For the FGN, it would be recalled that the 2021 Appropriation and Supplementary Acts included Total New Borrowings (from Domestic and External sources) of N5.489 Trillion to part finance the Deficit. Borrowings for this purpose and disbursements by multi-lateral and bi-lateral creditors account for a significant portion of the increase in the Debt Stock. Increases were also recorded in the Debt Stock of the States and the FCT.

The New Borrowings were raised from diverse sources, primarily through the issuances of the Eurobonds, Sovereign Sukuk and FGN Bonds. These capital raisings were utilized to finance capital projects and support economic recovery.

With the Total Public Debt Stock to Gross Domestic Product (GDP) as at December 31, 2021, of 22.47%, the Debt-to-GDP ratio still remains within Nigeria’s self-imposed limit of 40%. This ratio is prudent when compared to the 55% limit advised by the World Bank and the International Monetary Fund (IMF) for countries in Nigeria’s peer group, as well as, the ECOWAS Convergence Ratio of 70%.

The Federal Government is mindful of the relatively high Debt-to-Revenue Ratio and has initiated various measures to increase revenues through the Strategic Revenue Growth Initiative and the introduction of Finance Acts since 2019.

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