“In a quick response to the question, the Director-General of the Debt Management Office has explained that using the actual Public Debt Stock of N44 trillion as of September 30, 2022, as a basis and taking into account a number of ongoing activities, the Total Public Debt Stock, that is the External and Domestic Debt of the Federal Government, thirty-six (36) State Governments and the Federal Capital Territory would be about N77 Trillion”.
The Debt Management Office (DMO) has thrown more light on how it came about the projected debt stock of N77 trillion by May 2023.
According to the DMO, the figures were given by its Director-General, Ms Patience Oniha on Wednesday during the Public Presentation of the 2023 Appropriation Act by the Minister of Finance, Budget and National Planning, Mrs Zainab Shamsuna Ahmed, when one of the participants asked a question on the projected level of debt stock by May 2023 when the tenor of the current administration would have come to an end.
In a press statement, the DMO said “In a quick response to the question, the Director-General of the Debt Management Office, DMO (DG-DMO) explained that using the actual Public Debt Stock of N44 trillion as of September 30, 2022, as a basis and taking into account a number of ongoing activities, the Total Public Debt Stock, that is the External and Domestic Debt of the Federal Government, thirty-six (36) State Governments and the Federal Capital Territory would be about N77 Trillion”.
It went further to state that “The DG DMO explained that the Debt that will be added to the Public Debt Data in 2023 include the N1 Trillion Ways and Means Advances to finance the Supplementary Budget which has already been approved by the National Assembly (NASS) and
N22.72 Trillion Ways and Advances currently under the consideration by NASS.
“The projected Debt Stock for May 2023 also includes N5.567 Trillion representing about
50% of the New Borrowing of N11.134 Trillion in the 2023 Appropriation Act as well
as New Promissory Notes estimated at N1.5 Trillion to be issued to settle arrears of
the FGN and judgement debts. Also included are estimates for new borrowing by the
State Governments and FCT.
“From these figures, it is clear that the Ways and Means Advances of N22.72 Trillion
which represents funds already spent, and is the largest source of the increment.
“She added that the securitisation of the Ways and Means Advances will enable the DMO to include the debt in the Public Debt Stock thereby improving Debt transparency”.
There have been public outcries, expressing worries over the health of the Nigerian economy and the implications on the well-being of the citizenries, if the current administration leaves behind such a humongous quantum of debt to the incoming government.
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DMO sheds light on projected debt stock of N77trn by May 2023
