The country’s anticipated public debt caused undue concern, according to the Debt Management Office (DMO).
The Director-General, Mrs. Patience Oniha, made this declaration in response to rumors that the incoming administration would be saddled with a N77 trillion debt load.
She claimed that securitization of the CBN’s Ways and Means Advances would be necessary for Nigeria’s debt to reach that level.
She claims that by securitizing the Ways and Means Advances, the DMO will be able to add the debt to the public debt stock, increasing debt transparency.
Oniha had used the actual public debt stock, which was N44 trillion, as a basis for his explanation of the anticipated debt stock.
She said that the federal government, the 36 state governments, and the FCT all had domestic and external debts.
The total public debt stock, which includes the debts of the Federal Government, the 36 state governments, and the Federal Capital Territory, will be roughly N77 trillion after taking into consideration various ongoing activities.
“The N1 trillion Ways and Means Advances to finance the supplementary budget are included in the loans that will be included in the public debt data in 2023.
“The National Assembly has already given its approval to this” (NASS).
It also contains the N22.72 trillion in Ways and Means Advances that the NASS is now considering.
“The estimated debt stock for May 2023 also includes N5.567 trillion, or roughly 50% of the new borrowing authorized by the 2023 Appropriations Act, which amounts to N11.134 trillion.
Additionally, new promissory notes worth an estimated N1.5 trillion will be issued to pay off FGN arrears and court-ordered debts. She stated, according to NAN.
Estimates for fresh borrowing by state governments and the FCT are also included, according to her.
According to these numbers, “it is obvious that the main source of the rise is the Ways and Means Advances of N22.72 trillion, which represents cash previously spent,” said Oniha.
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