Nigeria’s total Public Debt reached N87.38 trillion by the end of the Second Quarter of 2023, according to the Debt Management Office (DMO).
This represents a 75.29% Increase from N49.85 trillion recorded at the end of March 2023.
The DMO’s report Included N22.71 trillion in Ways and Means Advances from the Central Bank of Nigeria to the Federal Government in total Debt.
The debt includes both Domestic and External Debts for the Federal Government, the 36 states, and the Federal Capital Territory.
The Increase in Public Debt was attributed to new Borrowings by the Federal Government and Sub-Nationals from Local and External Sources.
The DMO noted that Ongoing reforms and Recommendations from the Fiscal Reform and Tax Policies Committee are expected to Impact Debt strategy and Improve Debt Sustainability.
The DMO had previously projected that Nigeria’s Public Debt would reach N77 trillion after the National Assembly approved the Restructuring of the Central Bank’s Ways and Means Advances.
The latest Data shows that the actual Debt of N87.38 trillion exceeded this Projection by N10.38 trillion.
A further breakdown reveals that Nigeria’s total Domestic Debt is N54.13 trillion, while total External Debt stands at N33.25 trillion.
Domestic Debt makes up 61.95% of the total Debt, while External Debt constitutes 38.05%.
Both domestic and external Debt saw significant Increases within three months, with Domestic Debt rising by 79.18% and External Debt Increasing by 69.28%.
In a 2022 Debt Sustainability Analysis Report, the DMO expressed concerns about Nigeria’s ability to Support fresh Debt with Projected Revenues of N10 trillion for 2023.
The report noted that the Projected Debt service-to-revenue ratio of 73.5% for 2023 is high and a Threat to Debt Sustainability.
The DMO called for Revenue generation Initiatives and reforms to Raise tax Revenue to GDP ratios and reduce reliance on Borrowing.
President Bola Tinubu’s Administration has expressed its Commitment to breaking the cycle of Overreliance on Borrowing for Public spending.
The Government aims to reduce Borrowing through Public-private partnerships and the privatization or sale of Government assets.
