Nigeria’s overall governmental debt stood at N39.556 trillion (or $95.779 billion) in December 2021, the fourth quarter of the previous year.
The debt stock was N38 trillion ($92.626 billion) in September 2021 (Q3), compared to N32.915 trillion ($86.392 billion) in December 2020.
The figure represents the total external and internal debts of the Federal Government of Nigeria (FGN), the 36 state governments, and the Federal Capital Territory, according to a statement released by the Debt Management Office (DMO) on Thursday (FCT).
The debt stock, according to DMO, includes additional borrowings by FGN and the sub-nationals. To partially finance the deficit, the federal government had collected N5.5 trillion in domestic and overseas borrowings in the 2021 Appropriation and Supplementary Acts.
“A considerable amount of the rise in the debt stock is accounted for by borrowings for this purpose and disbursements by multilateral and bi-lateral creditors.” The debt stock of the states and the FCT also increased, according to DMO.
The fresh borrowings came from a variety of sources, including Eurobonds, Sovereign Sukuk, and FGN Bonds, according to the report. These funds were used to fund capital projects and aid in the rebuilding of the economy.
Dismissing any concerns about Nigeria’s rising debt profile, the DMO, led by Director General Ms Patience Oniha, stated that the total public debt stock to Gross Domestic Product (GDP) as of December 31, 2021, was 22.47 percent, which is still within Nigeria’s self-imposed debt-to-GDP ratio of 40 percent.
“When contrasted to the World Bank and International Monetary Fund (IMF) 55 percent limit for countries in Nigeria’s peer group, as well as the ECOWAS Convergence Ratio of 70 percent, this ratio is conservative.”
“Because of the relatively high Debt-to-Revenue Ratio, the federal government has taken a number of steps to enhance income, including the Strategic Revenue Growth Initiative and the enactment of Finance Acts since 2019,” she noted.