Nigeria’s public debt stock stood at ₦39.56 trillion (US$95.78 billion) at December 31, 2021, a statement by Debt Management Office (DMO) reveals.
This figure represents an increase of 20.17% from ₦32.92 trillion (US$86.39 billion) it stood at as of December 31, 2020.
Total Public Debt is composed of the domestic and external debt of the Federal Government, the 36 state governments and the Federal Capital Territory, FCT.
A breakdown of the public debt figure under review indicated that the external debt was N15.86 trillion (US$38.39 billion) representing 40.08%.
On the other hand, domestic debt was ₦23.70 trillion (US$57.34 billion) representing 59.92% of the total stock.
The Federal Government of Nigeria owes N13.88 trillion (US$33.62 billion) accounting for 35.10% of the external debt and 48.65% or N19.24 trillion (US$46.59 billion) of the domestic debt.
States and FCT owe 4.98% or N1.97 trillion (US$4.77 billion) of the external debt and 11.27% or N4.46 trillion (US$10.80 billion) of the domestic debt.
How the borrowings were raised
The New Borrowings were raised from diverse sources, primarily through the issuances of the Eurobonds, Sovereign Sukuk and FGN Bonds. These capital raisings were utilized to finance capital projects and support economic recovery.
With the Total Public Debt Stock to Gross Domestic Product (GDP) as at December 31, 2021, of 22.47%, the Debt-to-GDP ratio still remains within Nigeria’s self-imposed limit of 40%. This ratio is prudent when compared to the 55% limit advised by the World Bank and the International Monetary Fund (IMF) for countries in Nigeria’s peer group, as well as, the ECOWAS Convergence Ratio of 70%.
The debt-to-GDP ratio of 40% which the Federal Government has maintained shows that it is mindful of the relatively high Debt-to-Revenue Ratio. To keep this stable, the FG has initiated various measures to increase revenues through the Strategic Revenue Growth Initiative and the introduction of Finance Acts since 2019.