FG, states owe ₦49.8trn as Nigeria's debt reaches new all-time high

The Federal and State Governments’ debt stock has risen from ₦46.2 trillion ($103.3bn) in December 2022 to ₦49.8 trillion ($108.3bn) as of March 2023, setting a new all-time high.

This is according to the latest report from the Debt Management Office (DMO) on the night of Friday, June 23, 2023.

The DMO, in a statement, stated that the new figure comprised external and domestic debts incurred by the Federal government, 36 states, and the Federal Capital Territory (FCT).

However, the DMO noted that the figure doesn't include the Federal Government’s ₦22.7 trillion Ways and Means Advances of the Central Bank of Nigeria (CBN), which it said will be captured in the federal government of Nigeria's debt stock from June this year.

The 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 N49.85tr ($108.30bn).

“Comparatively, the Total Public Debt Stock for the preceding period, December 31, 2022, stood at N46.2tr ($103.3bn). During the period, there were increases in the debt stock of the FGN, States, and the FCT.”

“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.”

DMO says no more borrowings

This development comes barely 24 hours after the office warned that the Federal Government’s projected revenue of ₦10 trillion for 2023 is insufficient to support fresh borrowings.

According to the DMO, the projected government’s debt service-to-revenue ratio of 73.5 per cent for 2023 is high and a threat to debt sustainability. It added that the current revenue profile of the government can't sustain a higher level of borrowing.

“The projected FGN Debt Service-to-Revenue ratio at 73.5 per cent for 2023 is high and a threat to debt sustainability.

“It means that the revenue profile cannot support higher levels of borrowing. Attaining a sustainable FGN Debt Service-to-Revenue ratio would require an increase of FGN Revenue from N10.49tn projected in the 2023 Budget to about N15.5tn," the DMO stated in a report.