Nigeria’s debt to hit all-time high N45trn in 2022 as FG borrows additional N6.39trn — DMO

With an additional borrowing of N6.39 trillion by the Buhari administration to finance the 2022 budget deficit, the total debt stock of Nigeria is climbing to  N45 trillion, according to the Debt Management Office (DMO).

The DMO’s Director-General, Mrs Patience Oniha, disclosed that the overall deficit in the 2022 budget is about N6.30 trillion, necessitating borrowing to finance it.

The deficit represents about 3.46 per cent of the country’s Gross Domestic Product (GDP),  a DMO document which contained these facts has revealed

The DMO had earlier disclosed that the country’s total debt stock as of December 2021 is N39.55 trillion.

Oniha said that the budget deficit was to be financed mainly by borrowings from both domestic and foreign sources, as well as privatisation proceeds.

Read Also: No plan to increase ex-depot price of petrol, say FG, NNPC

“N2.57trn will come from domestic sources, N2.57trn from foreign sources, N1.16trn from multilateral and bilateral loan drawdowns and N90.7bn from privatisation proceeds.”

She said the 2022 aggregate Federal Government spending was projected at N17.1trn which is 18 per cent higher than the 2021 budget.

“Recurrent (non-debt) spending, estimated to amount to N6.9trn, is 40 per cent of total expenditure and 20 per cent higher than the 2021 budget.

“Aggregate capital spending of N5.96trn is 35 per cent of total expenditure,’’ the DMO boss said, adding debt service in the 2022 budget is N3.6trn, making 21 per cent of total expenditure and 34 per cent of total revenue projected.

“Provision to retire maturing bonds of N270.7bn to local contractors is 1.6 per cent of total expenditure.

“This provision is in line with the Federal Government’s commitment to offset accumulated arrears of contractual obligation dating back over a decade.”