According to the latest figures from the Debt Management Office (DMO) on Thursday, Nigeria’s total debt increased in the fourth quarter of 2022, reaching N46.25 trillion or $103.11 billion.
According to the DMO, total debt includes domestic and foreign debt of the federal government, 36 state governments, and the Federal Capital Territory (FCT).
The statement also adds that in terms of composition, total domestic debt is 27.55 trillion nairas ($61.42 billion) while total external debt is 18.70 trillion nairas ($41.69 billion).
One of the reasons for the increase in the total public debt reserve is new loans from FGN and local governments, mainly to finance the budget deficit and implement projects.
“The fact that FGN issues promissory notes to pay off certain debts also contributes to an increase in outstanding loans.
“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, ” it reads.
The statement showed that the total public debt to Gross Domestic Product (GDP) ratio for December 31, 2022, was 23.20 percent which indicates a slight increase from the figure for December 31, 2022, at 22.47 percent.
“The ratio of 23.20 percent is within the 40 percent limit self-imposed by Nigeria, the 55 percent limit recommended by the World Bank/International Monetary Fund, and the 70 percent limit recommended by the Economic Community of West African States,” it stated.
