ABUJA, Nigeria — The Debt Management Office, DMO, announced on Friday, June 23, 2023, that Nigeria’s total public debt has risen to $108.3 billion (N49.8 trillion) as of March 31, 2023.
The disclosed figure includes the debts owed by both the federal and state governments, but does not include the Federal Government’s N22.7 trillion Ways and Means Advances from the Central Bank of Nigeria, CBN, which was recently approved for securitization by the National Assembly.
The DMO’s statement read, “As at March 31, 2023, the Total Public Debt Stock comprising the external and domestic debts of the Federal Government of Nigeria, FGN, the thirty-six (36) States, and the Federal Capital Territory, FCT, was N49.85 trillion ($108.30 billion).”
This is an increase compared to the total public debt stock of N46.2 trillion ($103.3 billion) recorded at the end of December 2022.
The increase was attributed to a rise in the debt stock of the Federal Government, states, and the Federal Capital Territory.
The statement further clarified, “The Public Debt Stock for March 2023 does not include the FGN’s N22.719 Trillion Ways and Means Advances of the Central Bank of Nigeria whose securitization was approved by the National Assembly in May 2023. The amount will be included in the FGN’s Domestic Debt Stock from June 2023.”
Financial experts have issued warnings to the current administration of President Bola Tinubu against further borrowing.
The escalating debt has raised concerns regarding Nigeria’s fiscal sustainability and the capacity to manage these obligations effectively.
The Nigerian government is urged to adopt prudent fiscal measures, enhance revenue generation, and be cautious about further borrowing in order to safeguard the country’s economic stability.
This development places a spotlight on the need for strategic economic planning and management in Nigeria, as increasing debt levels may have significant implications for the nation’s economic future.
