Nigeria’s debt grows by N2.04tr in Q1

From Uche Usim, Abuja

Data from the Debt Management Office (DMO) has revealed that Nigeria’s total sovereign debt stock swelled by N2.04 trillion in the first quarter of this year. The debt grew from N39.56 trillion December 31, 2021   to N41.60 trillion within the first three months of 2022. 

Sovereign debt encompasses what the federal government, 36 states and the Federal Capital Territory owes.

According to the DMO, the public debt stock includes new domestic borrowing by the federal government used to partly finance the deficit in the 2022 Appropriation Act. It also includes the $1.25 billion Eurobond issued in March 2022 and disbursements by multilateral and bilateral lenders.

It added that there were also increases in the debt stock of the state governments and the FCT.

The DMO also said the total public debt to GDP is now 23.27 per cent, which is below Nigeria’s self-imposed limit of 40 per cent.

The DMO on its website said: “The total public debt stock as at March 31, 2022, was N41.60 trillion or $100.07 billion.

“The amount represents the domestic and external debt stocks of the Federal Government of Nigeria, the 36 state governments and the Federal Capital Territory. The comparative figures for December 31, 2021, were N39.56 trillion or $95.78 billion.”

Experts are worried over the rising debt amid dipped crude production and shrinking export.