• Nigeria’s national debt profile will reach 77 trillion naira by 2023, according to the Debt Management Office (DMO)
  • DMO CEO Patience Oniha said the new CBN loans will increase the country’s debt.
  • She said the debt profile will certainly cross the N70 trillion mark if new loans are considered.

Nigeria’s debt stock is projected to reach 77 trillion naira with the addition of 22.7 trillion naira loans from the Central Bank of Nigeria (CBN) to the federal government, as well as new loans billed by 2023.

The country’s debt profile reached N44.06 trillion in the third quarter of 2022 from N39.56 trillion at the end of 2021, according to data from the Debt Management Office (DMO).

President Muhammadu Buhari presents the budget to the National Assembly Credit: State House
Source: Getty Images

Buhari pleads with NASS to approve restructuring

According to Patience Oniha, Director General of the Debt Management Office, the country’s debt has already surpassed the N44 trillion mark in September 2022 and immediately after the National Assembly approves the securitization of CBN’s ways and means, the amount would be added to the national debt. debt.

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She said the move will bring the total debt profile to N77 trillion if the new loans are added.

BusinessDay Report said the head of the DMO had this to say when answering questions about debt during the public presentation and breakdown of the Appropriation Act 2023 in Abuja.

The debt profile is also growing from the issuance of promissory notes, partly inherited from previous governments, with more to be issued between now and June 2023.

President Muhammadu wrote to the National Assembly last week requesting approval of the restructuring of N22.7 trillion in Ways and Means advances given to the Nigerian government by the CBN.

Lawmakers refused to approve the president’s request and insisted on conducting due diligence.

Debt will grow if request is not granted, says minister

Finance, Budget and National Planning Minister Zainab Ahmed said approving CBN’s securitization would be beneficial, saying interest on debt is worrying.

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Ahmed stated that if the application is not approved, the interest rate will continue to accrue from about N1.8 trillion to N2.2 trillion on top of the principal.

The Punch reports that The Ways and Means Advance by CBN is a lending facility through which the Central Bank of Nigeria finances deficits in the nation’s budget.

FG spends N5.24tn on debt service in 2022

Ahmed said the Nigerian government spent around N5.24 trillion on debt service alone between January and November 2022, out of its total spending of N12.87 trillion for the same period.

He said that the internal debt consumed N2.5 trillion, the external debt N1.08 trillion and the interest on CBN loans stood at N1.64 trillion.

The World Bank had projected that the CBN’s Nigerian loans would eat up 62 percent of government revenue by 2027, regardless of the country’s restructuring plan.

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legit.ng reported that according to data from the Debt Management Office (DMO), Nigeria’s total debt stock has exceeded 41 trillion naira as of March 2021.

The debt breakdown, tabulated by Legit.ng, shows that the various states of Nigeria contribute hugely to the stock of national debt.

Nigeria’s total public debt stock has reportedly increased from N39.56 trillion in December 2021 to N41.60 trillion, $100.07 billion in the first three months of 2022, from January to March, revealed yesterday the Debt Management Office (DMO).

Source: Legit.ng