The Debt Management Office (DMO) has disclosed that Nigeria’s total public debt soared to N87.38tn by the close of the second quarter of 2023.

This figure represents a substantial increase of 75.29 percent, equating to N37.53tn, when juxtaposed with the N49.85tn reported at the end of March 2023.

Components of Public Debt

The DMO, in its recent report, confirmed that this debt encompasses the N22.71tn Ways and Means Advances extended by the Central Bank of Nigeria (CBN) to the Federal Government.

As stated by the DMO,

• “Nigeria’s total public debt stock as of June 30, 2023, was N87.38tn ($113.42bn). It comprises the total domestic and external debts of the Federal Government of Nigeria, the thirty-six states, and the Federal Capital Territory.”

Furthermore, the DMO highlighted the significant addition to the Public Debt Stock, attributing it to the inclusion of the N22.712tn securitized Federal Government’s Ways and Means Advances.

Factors Contributing to Debt Growth

The report acknowledges that the expansion of Nigeria’s public debt is primarily due to various factors, including

New Borrowings- Both the Federal Government and sub-national entities have notably increased their borrowing activities from local and external sources.

Reforms- The report underscores ongoing reforms initiated by the present administration, along with potential reforms resulting from the recommendations of the Fiscal Reform and Tax Policies Committee, to enhance debt strategy and sustainability.

Breakdown of Debt

The report provides a detailed breakdown of Nigeria’s public debt. Domestic loans stood at N54.13 trillion while external debt was N33.25 trillion