Nigeria’s national debt hits an all time as the country struggles with repayment

Nigeria’s public debt has reached an all time high of N44.06tn in the third quarter of 2022.

This is according to a report by the Punch Newspaper, which also noted that the rise in debt is coming amidst the country’s struggle to repay its already substantial debt.

According to the report, ,the total public debt stock rose from N42.84tn recorded in the second quarter to N44.06tn in Q3, 2022. This shows that Nigeria amassed a debt of N1.22tn in the last three months.

The new rise in debt service is a result of the new funds the Nigerian government had borrowed to part-finance the deficit in the 2022 Appropriation Act, alongside new borrowings by sub-nationals.

Also, it is important to note that the total public debt stock consists of domestic debt of N26.92tn and external debt of N17.15tn.

Total public debt stock which comprises the total domestic and external debt stock of the Federal Government of Nigeria, all State Governments and the Federal Capital Territory stood at N44.06tn.”a statement released to this effect read in parts

“In comparison, the total public debt figure as of June 30, 2022, was N42.84tn. The total domestic stock as of September 30, 2022, was N26.92tn while the total external debt stock as of September 30, 2022, was N17.15tn.

The increase in the debt stock was largely due to new borrowings by the Federal Government to part-finance the deficit in the 2022 Appropriation Act, as well as, new borrowings by sub-nationals.” The statement also reads.

A Washington-based bank gave its input, and said that the debt could become very uncontrollable if it is subjected to macro-fiscal shocks.

“While currently the debt stock of 27%of the Gross Domestic Product is considered sustainable, any macro-fiscal shock can push debt to unsustainable levels.

However, the debt to the GDP in Nigeria is rising quickly, and the total stock of debt in absolute value has almost doubled between 2016 and 2020, and without a policy change is expected to reach 40 per cent of the GDP by 2025.”