Nigeria’s Debt to Rise to N45trn in 2022

Nigeria’s Debt Management Office (DMO) has said the nation’s debt is expected to rise to N45trn in 2022.

The DMO revealed on Friday that the overall deficit in the 2022 budget is N6.39trn representing 3.46% of the budget.

Director-General of the agency, Patience Oniha had revealed on Thursday that Nigeria’s debt in 2021 stood at N39.6trn.

The 2022 deficit will be financed by borrowings from domestic and foreign sources.

“N2.57tn will come from domestic sources, N2.57tn from foreign sources, N1.16tn from multilateral and bilateral loan drawdowns, and N90.7bn from privatisation proceeds,” Oniha said.

The aggregate federal government spending for 2022 was set at N17.1trn, which is an 18% increase from what the government spent in 2021. 

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“Recurrent (non-debt) spending, estimated to amount to N6.9tn, is 40 per cent of total expenditure and 20 per cent higher than the 2021 budget.

“Aggregate capital spending of N5.96tn is 35 per cent of total expenditure.’’

Debt service for the 2022 budget is N3.6trn according to Oniha and that represented 21 per cent of the total budget and 34 per cent of revenue in the budget.

Oniha in her breakdown of the debts about to be accrued said “Provision to retire maturing bonds of N270.7bn to local contractors is 1.6 per cent of total expenditure” while she claimed that the provision is “in line with the Federal Government’s commitment to offset accumulated arrears of contractual obligation dating back over a decade.”

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The DMO also announced on Friday that the Nigerian government has obtained a $1.25bn Eurobonds loan from the International Capital Market.

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