Nigeria’s public debt rose by 2.9% (N1.3 Trillion) in Quarter 3 of 2022 to N44.1 Trillion

According to a press release by the debt management office, as of September 30, 2022, the Federal Government of Nigeria (FGN), all State Governments, and the Federal Capital Territory (FCT) had a combined total domestic and external debt stock of N44.06 trillion. Comparatively, the Total Public Debt amount was N42.84 trillion as of June 30, 2022.

The whole domestic stock was N26.92 trillion as of September 30, 2022, an increase of 2.7% q/q and 20.1% y/y to N26.9trn. On the other hand, the total external debt stock was N17.15 trillion ($39.7 trillion), representing a marginal decline of just 1.0% q/q. The Federal Government’s new borrowings to partially fund the deficit in the 2022 Appropriations Act, as well as new borrowings by sub-nationals, were the main causes of the growth in the debt stock, explained the DMO.

As for the 36 States and the FCT, their domestic debt climbed by 1.9% quarter over quarter to N5.4 trillion at the end of September 2022 from N5.3 trillion in the previous quarter. It increased year over year by 27.7%. The states with the highest debts are Lagos State (N877 billion), Delta State (N272 billion), and Ogun State (N242bn), respectively.

It will be recalled that the President, Muhammadu Buhari, recently sent a request to the National assembly to borrow an additional sum of N819.54b loan and to Convert the existing N23.72T ways and means balances to a 40 year bond. The N819.54 billion the Government says is to be used for the repair of various infrastructure damaged by the recent floods in the country.

This extra budgetary expenditure requested for by the President is intended for the capital spending component of the 2022 budget, resulting in a rise in the Budget deficit to N8.17 trillion. You can read the press release by the debt management office here