The federal and state governments’ borrowings have driven Nigeria’s total debt stock to N44.06 trillion.
The Debt Management Office announced this Wednesday in Abuja in a statement.
According to the report on September 30, 2022, “the Total Public Debt Stock of Nigeria, which encompasses the Total Domestic and External Debt Stock of the Federal Government of Nigeria (FGN), all State Governments, and the Federal Capital Territory (FCT), was at N44.06 trillion.”
As of June 2022, Nigeria’s entire national debt was N42.84 trillion before the disclosure.
However, DMO disclosed, “the total domestic debt stock as of September 30, 2022, was N26.92 trillion and the total external debt stock as of September 30, 2022, was N17.15 trillion.”
According to DMO, “largely new borrowings by the Federal Government to part-finance the deficit in the 2022 appropriation Act, and new borrowings by sub-nationals” are to blame for the rise in the debt stock.
Third quarter (Q3) 2022 debt service expenditures for both foreign and domestic debt were estimated at N1.17 trillion, according to data from the DMO. N820.59 trillion was used to pay off domestic debt, while N356.92 trillion was used to pay off foreign debt ($801.23 million).
During the first six months of 2022, the federal government spent N1.33 trillion (or 42.5% more than the N935.46 billion spent during the same period in 2021) on domestic debt payments.
Most funds were utilised to settle debts owed to regional construction firms.
The domestic debt service in the first half of 2022 was N1.19 trillion, a 19.2 per cent rise over the second half of 2021.