OPS predicts woes as national debt hits N46tn

PUNCH

The Debt Management Office, on Thursday, revealed that Nigeria’s total public debt stock increased to N46.25tn or $103.11bn in the fourth quarter of 2022.

The latest figure has made members of the organised private sector and economists to predict that tougher days are ahead for Nigerians and firms.

The national debt as of September, 2022, was put at N44.06tn.

According to the office, the new figure consists of the domestic and external total debt stocks of the Federal Government and the sub-national governments (36 state governments and the Federal Capital Territory).

The latest figure was disclosed in a statement by the Debt Management Office..

The DMO stated that the comparative figure of public debt as of December 31, 2021, was N39.56tn or $95.77bn.

This means that the country’s debt increased by N6.69trn or $7.34bn within one year.

Stating reasons for the increase, the DMO said new borrowings by the FGN and sub-national governments, primarily to fund budget deficits and execute projects and the issuance of promissory notes to settle some liabilities also contributed to the growth in the debt stock.

The statement read in part, “As of December 31, 2022, the total public debt stock was N46.25tn or $103.11bn. In terms of composition, total domestic debt stock was N27.55tn ($61.42bn) while total external debt stock was N18.70tn ($41.69bn).

“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.