Nigeria’s overall public debt increased to N87.38 trillion by the end of the second quarter of 2023, according to the Debt Management Office.
According to The Times, when compared to the N49.85tn reported at the end of March 2023, this statistic shows a significant rise of 75.29 percent or N37.53tn.
In a recent report, the DMO revealed that this debt includes the N22.71 trillion in Ways and Means Advances given to the Federal Government by the Central Bank of Nigeria.
According to the DMO, “As of June 30, 2023, Nigeria had a total public debt stock of N87.38 trillion ($113.42 billion). It includes the 36 states plus the Federal Government of Nigeria’s combined internal and external debts of the Federal Government of Nigeria, the thirty – six states, and the Federal Capital Territory.”
The DMO also emphasized the large increase in the Public Debt Stock, attributing it to the addition of the securitized N22.712tn Federal Government Ways and Means Advances.
The research recognizes that the rise in Nigeria’s public debt is primarily caused by a number of reasons, including
New Borrowings: The Federal Government as well as subnational organisations have significantly boosted their borrowing from internal and external sources.
Reforms: To improve debt strategy and sustainability, the report highlights ongoing changes launched by the current administration as well as anticipated reforms arising from the Fiscal Reform and Tax Policies Committee’s recommendations.
The public debt of Nigeria is broken down in great detail in the study. In contrast to external debt, which was N33.25 trillion, domestic loans totaled N54.13 trillion.
