In the third quarter of 2022, Nigeria’s public debt rose to an all-time high of N44.06 trillion.
This is according to a report from the Punch Newspaper, which also pointed out that the government is currently struggling to pay back its already huge debt.
The overall public debt stock increased from N42.84 trillion in the second quarter to N44.06 trillion in the third quarter of 2022, according to the report. This demonstrates that over the last quarter, Nigeria accumulated a debt of N1.22 trillion.
The additional monies that the Nigerian government had borrowed in order to partially cover the deficit in the 2022 Appropriations Act, as well as further borrowing by sub-nationals, are to blame for the current increase in debt service.
The overall public debt stock is made up of N17.15 trillion in external debt and N26.92 trillion in domestic debt, which should be noted.
The Federal Government of Nigeria, all State Governments, and the Federal Capital Territory all have total public debt stocks totaling N44.06 trillion, according to a declaration issued to that effect.
Comparatively, the entire governmental debt as of June 30, 2022, was N42.84 trillion. The overall domestic stock was N26.92 trillion as of September 30, 2022, while the total external debt stock was N17.15 trillion.
The federal government’s additional borrowing to help offset the deficit in the 2022 Appropriations Act as well as new borrowing by sub-nationals were the main causes of the growth in the debt stock. It continues with this sentence.
An opinion was offered by a bank based in Washington, which warned that if the debt were to experience macro-fiscal shocks, it may become very difficult to manage.
“While the debt stock currently at 27% of GDP is seen as sustainable, any macro-fiscal shock can raise the debt to levels that are no longer manageable.
Nigeria’s debt to GDP ratio is expanding swiftly, nevertheless, and between 2016 and 2020, the total stock of debt nearly doubled in absolute terms. Without a change in policy, this debt is predicted to represent 40% of the country’s GDP by 2025.