Nigeria’s public debt hits N44trn

The Debt Management Office (DMO) reported that Nigeria’s public debt reached N44.6 trillion in the third quarter of this year (Q3 in 2022). And this represents a 2.9 percent quarter-on-quarter decrease from the N42.84 trillion recorded in the second quarter of 2022.

According to Vanguard, DMO in a press statement on its website on Friday noted that the increase in public debt was due to new borrowings by the Federal Government to part-finance the deficit in the 2022 Appropriation Act, as well as new borrowings by sub-nationals.

DMO said that the total public debt stock comprises domestic debt of N26.92 trillion and external debt of N17.5 trillion.

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The statement read, “Total public debt stock which comprises the total domestic and external debt stock of the federal government of Nigeria (FGN), all State Governments and the Federal Capital Territory (FCT) stood at N44.06 trillion.

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“In comparison, the total public debt figure as of June 30, 2022, was N42.84 trillion. The total domestic stock as of September 30, 2022, was N26.92 trillion while the total external debt stock as of September 30, 2022, was N17.15 trillion.

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“The increase in the Debt Stock was largely due to New Borrowings by the Federal Government to part-finance the deficit in the 2022 Appropriation Act, as well as, New Borrowings by sub-nationals.”

Data from the DMO’s external and domestic debt service also showed that the country spent N1.17 trillion on debt in Q3’22.

This comprises N820.59 billion for domestic debt service and N356.92 billion ($801.23 million) for external debt service.

Recently, the World Bank, in its International Debt Report, IDR, said that Nigeria spent $9.6 billion to service foreign debts in 12 years, from 2010 to 2021, adding that the nation’s debt stock is not reflected in the economy.