The Debt Management Office (DMO) has explained that public debt would only hit the projected N77 trillion if the ways and means advances from the Central Bank of Nigeria (CBN) are included.
The DMO on Thursday said that the next administration will inherit a public debt of N77 trillion if the N23 trillion loans from the Central Bank of Nigeria (CBN) are securitised.
The Director-General of the DMO, Patience Oniha, made this known in a statement on Thursday.
In recent weeks, there have been heated debates on the sustainability of Nigeria’s debt amid shrinking revenue and mounting CBN loans.
Last week, President Muhammadu Buhari requested a delayed approval for the N23.7 trillion loan that had already been spent, causing an uproar in the Senate. Lawmakers rejected the request and accused the president of violating the constitution. They also demanded details of how the money was spent.
In her statement Thursday, Mrs Oniha noted that Nigeria’s total debt stock rose to N44.06 trillion as of the end of September 2022, largely reflecting the weakness of the local unit, the Naira.
She added, however, that should the CBN loans be added to the debt profile, the nation’s debt portfolio would increase significantly.
“Considering reports that the next administration may inherit a total public debt stock of about N77 trillion, the estimated figure can be expected only if the Ways and Means Advances from the Central Bank of Nigeria are securitized,” she said.
“Nevertheless, it should be noted that the securitization will enhance debt transparency as the DMO will then be able to include the debt in the total public debt stock.
“If securitization is achieved, a brief breakdown of the estimated total public debt stock by May 2023 may comprise of the current total public debt stock of N44.06 trillion; the Ways and Means Advances of N22.72 trillion currently under the consideration by lawmakers.”
The DMO boss added that the projected debt stock for May 2023 remains at about N5.567 trillion.
This represents about 50 per cent of the new borrowing of N11.134 trillion in the 2023 Appropriation Act; the N1 trillion Ways and Means Advances to finance the supplementary budget already approved by the lawmakers; the new Promissory Notes estimated at N1.5 trillion to be issued to settle arrears of the FGN and judgment debts; and the estimated new borrowings by subnational for the same period.
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