The Debt Management Office, DMO, on Thursday said the nation’s public debt rose by N6.69 trillion or 22.47 per cent to N46. 25 trillion ($103.11 billion) at the end of 2022 from N39. 56 trillion ($95.77 billion) at the end of December 2021.
But the amount spent on debt service fell in 2022 to N3.87 trillion, representing an 8.3 per cent decline from N4.22 trillion spent in 2021.
The DMO disclosed this yesterday, saying the public debt figure accounts for the total debt owed by the federal and state governments, as well as, the Federal Capital Territory.
The DMO said that the debt figure under review is 23.20% of the Gross Domestic Product (GDP), indicating that it was well within the limits set by both the Federal Government and international organisations.
It said: “The ratio of 23.20% is within the 40% limit self-imposed by Nigeria, the 55% limit recommended by the World Bank/International Monetary Fund, and, the 70% limit recommended by the Economic Community of West African States.”
Details of the data showed that the total Domestic Debt Stock was N27.55 trillion ($ 61.42 billion) while Total External Debt Stock was N18.70 trillion ($ 41.69 billion).
The DMO explained that the increase in the debt stock was due mainly to new borrowings by the federal and state governments to finance their budget deficits and to execute some specific projects, as well as, the issuance of Promissory Notes to settle some Federal Government liabilities.
It said: “Amongst the reasons for the increase in the Total Public Debt Stock were New Borrowings by the FGN and sub-national governments, primarily to fund budget deficits and execute projects. The issuance of Promissory Notes by the FGN to settle some liabilities also contributed to the growth in the Debt Stock.”
The DMO expressed optimism that ongoing efforts by the government to increase revenues from oil and non-oil sources through initiatives such as the Finance Acts and the Strategic Revenue Mobilization initiative will yield expected outcomes of higher revenue that will support debt sustainability.
The Federal Government’s Domestic Debt as of December 31, 2022, stood at N 22.210 trillion, held in various instruments.
Detailed analysis showed that N16.421 trillion (73.97 per cent) was held in Federal Government of Nigeria (FGN) Bonds; Nigerian Treasury Bills, N4.422 trillion (19.91 per cent); FGN Sukuk N742.557 billion (3.34 per cent); Promissory Notes, N530.033 billion (2.39 per cent); Nigerian Treasury Bonds, N50.988 billion (0.23 per cent); FGN Savings Bond, N27.505 billion (0.12 per cent); and Green Bond, N15 billion, (0.07 per cent).
Analysis of the quarterly report of the Debt Management Office, DMO, on domestic and external debt service payments in 2022 showed that N2.56 trillion was spent on domestic debt service while external debt service payment stood at $2.14 billion.
The external debt service payment of $2.41 billion at the current official exchange rate of N461.24 per dollar translates to N1.31 billion.
According to the DMO, total debt service payment in the first quarter of Q1’22 stood at N989 billion comprising domestic debt service payment of N66.9 billion and external debt service payment of N320 billion or $694 million.
Total debt service payment fell by 4.9 per cent quarter on quarter, QoQ, to N941 billion in Q2’22 comprising domestic debt service payment of N665 billion and external debt service payment of N275.95 million or $597.95 million.
However, total debt service payment rose by 41.1 per cent QoQ to N1.33 trillion in Q3’22 comprising domestic debt payment of N820.6 billion and external debt payment of $513.8 million or $801.23 billion.
In Q4’22, total debt payment service fell by 54.4 QoQ to N606.97 billion comprising domestic debt payment of N406.77 billion and external debt service debt payment of N200 billion or $312.27 million.
