Nigeria’s total public debt rose to N32.9tn at the end of December 2020, the Debt Management Office said in a statement on Monday.
From its last report on public debt, the figure stood at N32.2tn as of the end of September 2020, which showed an increase of N700bn.
The DMO disclosed that the total public debt to the Gross Domestic Product was 21.61 per cent, adding that it was within Nigeria’s new limit of 40 per cent.
“Nigeria’s total public debt as of December 31, 2020 was N32.92tn. The figures include the debt stock of the federal and state governments, as well as, the Federal Capital Territory,” it stated.
It stated that once Nigeria exited recession in 2017, the extent of new borrowing at the federal level as shown inside the annual Appropriation Acts, have been declining to mild the price of growth within the public debt inventory to be able to make certain debt sustainability.
The DMO stated that new borrowing to part finance finances deficits had declined step by step from N2.36tn in 2017 to N2.01tn in 2018, N1.61tn in 2019 and N1.59tn within the first 2020 Appropriation Act.
This trend became reversed in 2020 due to the monetary and social effect of the COVID-19 pandemic as new borrowing within the revised 2020 Appropriation Act changed into N4.2tn.
The DMO stated, “It have to be stated though, that apart from the brand new home borrowing of N2.3tn, the alternative new borrowings had been concessional loans from the International Monetary Fund ($3.34bn) and different multilateral and bilateral creditors.
“This incremental borrowing to component-finance the 2020 finances and the additional issuance of promissory notes to settle a few arrears of the Federal Government of Nigeria, contributed to the increase in public debt stock.
“New home borrowings through kingdom governments additionally contributed to the growth within the public debt stock.”
In February, the Federal Executive Council at a assembly accredited a new Medium-Term Debt Management Strategy for Nigeria, throughout 2020-2023, while the authorities disclosed it deliberate to boom home borrowings in its debt profile from 2021 to 2023.
“Borrowing will be from home and external sources but a larger proportion of recent borrowing can be from home assets the usage of lengthy-term units at the same time as for external borrowing, concessional investment from multilateral and bilateral sources will be prioritised,” it said.