Nigeria’s debt stock, comprising the domestic and external debt stocks of the federal government,sub-national governments and the Federal Capital Territory, rose to N87.38 trillion at the end of the second quarter of 2023, according to a latest report by the Debt Management Office (DMO).
The figure represents a 75.29 per cent or N37.53 trillion increase compared to N49.85 trillion recorded at the end of the first quarter of 2023.
A statement issued by the debt office noted that in terms of composition, total domestic debt stock stood at N54.13 trillion, while total external debt was N33.25 trillion. The domestic debt makes up 61.95 per cent of total debt, the external makes up 38.05 per cent.
The DMO also confirmed that the debt encompasses the N22.71tn Ways and Means Advances extended by the Central Bank of Nigeria (CBN) to the federal government.
According to the DMO the increase in the total public debt was driven by new borrowings by the federal and sub-national governments from local and external sources.
It also identified the 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.
“The reforms already introduced by the present administration and those that may emerge from the recommendations of the fiscal reform and tax policies committee, are expected to impact debt strategy and improve debt sustainability,” the DMO stated.