Nigeria Adds N3.28 Trillion to Its Public Debt in The Second Quarter of 2022

Nigeria Adds N3.28 Trillion to Its Public Debt in The Second Quarter of 2022

  • Nigeria has added over N3 trillion to its entire public debt in 2022, representing about 2.98 per cent in the second quarter
  • The new addition brings the country’s total debt profile to N42.84 trillion as of June 30, 2022
  • The Debt Management Office (DMO) reveals that the loans came from the World Bank, China, and Germany, among others

Nigeria has increased its total public debt by 2.98 per cent in the second quarter of 2022, growing its debt profile to N42.84 trillion.

New data from the Debt Management Office (DMO) reveals that the entire stock represents domestic and external debt stocks of the federal government, the 36 state governments and the Federal Capital Territory.

Foreign Debt, Debt stock
President Muhammadu Buhari Credit: State House
Source: Facebook

DMO reveals top lenders

BusinessDay report said that the debt stock spiked by N3.28 trillion in the first half of this year from N39.56 trillion at the end of last year.

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The DMO stated that the total external debt stock went up to $40.06 billion, about N16 trillion as of June 30, 2022, from $39,96 trillion in March.

The DMO listed top sources of its external debt to include concessional and non-concessional loans from multilateral lenders such as the World Bank and bilateral lending from Germany, China, Japan, India and France.

According to the DMO, the total domestic debt as of June 30, 2022, was N26.23 trillion or $63.24 billion due to new loans by the federal government to partially finance the deficit in the 2022 Appropriation Act as well as new new ones by state governments and the FCT.

Debt within sustainable limit

The entire public debt to GDP was 23.06 per cent as of June 30, 2022, compared to 23.27 per cent as of March 30, 2022. It remains within the threshold of the self-imposed limit of 40 per cent.

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The DMO said:

“While the FGN continues to implement revenue-generating initiatives in the non-oil sector and block leakages in the oil sector, debt service-to-revenue ratio remains high,” the DMO said.

Two Nigerian states have highest debt exposure to China as total debt stock hits $100 billion

Recall that reported that as of November last year, two Nigerian states have the highest debt exposure to China, and Nigeria's debt to the Asian country has hit about $3.4b billion.

According to data from Debt Management Office (DMO), the states of Kaduna and Cross River has the highest debt to China, given through China's Exim Bank.


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