The Nigerian Debt Management Office (DMO) has termed the public outcry over the country’s rising debt profile as being unnecessary.
This was made known by the agency’s Director-General, Mrs. Patience Oniha, while responding to rumors that the next administration will inherit N77 trillion in debts.
According to her, Nigeria’s debt would only attain that level when the Ways and Means Advances from the CBN were securitized.
She claims that by securitizing the Ways and Means Advances, the DMO will be able to add the debt to the public debt stock, increasing debt transparency.
Oniha had used the actual public debt stock, which was N44 trillion, as a foundation for her explanation of the anticipated debt stock.
She further stated that the current debt stock includes domestic and external debts accrued by the federal government, the 36 state governments, and the FCT.
“Taking into account a number of on-going activities, the total public debt stock; that is the external and domestic debts of the Federal Government, the 36 state governments and the FCT would be about N77 trillion.
“The debts that will be added to the public debt data in 2023 include the N1 trillion Ways and Means Advances to finance the supplementary budget.
“This has already been approved by the National Assembly (NASS).
“It also includes N22.72 trillion Ways and Means Advances currently under the consideration by the NASS.
“The projected debt stock for May 2023 also includes N5.567 trillion, representing about 50 per cent of the new borrowing of N11.134 trillion in the 2023 Appropriation Act.
“It also includes new Promissory Notes estimated at N1.5 trillion to be issued to settle arrears of the FGN and judgement debts,’’ NAN quoted her as saying.
She also claims that estimates for further borrowing by state governments and the FCT are included.
“From these figures, it is clear that the Ways and Means Advances of N22.72 trillion which represents funds already spent, is the largest source of the increase,’’ Oniha stated.
