The Debt Management Office (DMO) has disclosed that Nigeria’s total public debt soared to N87.38tn by the close of the second quarter of 2023. This figure represents a substantial increase of 75.29 percent, equating to N37.53 trillion, when juxtaposed with the N49.85 trillion naria reported at the end of March 2023.
The DMO, in its recent report, confirmed that this debt encompasses the N22.71 trillion Ways and Means Advances extended by the Central Bank of Nigeria (CBN) to the Federal Government.
As stated by the DMO, “Nigeria’s total public debt stock as of June 30, 2023, was N87.38tn ($113.42bn). It comprises the total domestic and external debts of the Federal Government of Nigeria, the thirty-six states, and the Federal Capital Territory.”
Furthermore, the DMO highlighted the significant addition to the Public Debt Stock, attributing it to the inclusion of the N22.712tn securitized Federal Government’s Ways and Means Advances. The report acknowledges the expansion of Nigeria’s public debt which is primarily due to various factors. One of the major factors is borrowings by the Federal Government and sub-national entities.
Besides borrowing, reforms also contributed to the Nigeria’s debt. The report underscores ongoing reforms initiated by the present administration, along with potential reforms resulting from the recommendations of the Fiscal Reform and Tax Policies Committee, to enhance debt strategy and sustainability.
The report provides a detailed breakdown of Nigeria’s public debt. Domestic loans stood at N54.13 trillion while external debt was N33.25 trillion.