Debt of 77 trillion dollars: alarm over unnecessary national debt – DMO
The Debt Management Office (DMO) said the alarm created around the country's projected public debt was unnecessary.
Director-General Ms Patience Oniha said this in a statement to respond to reports that the next government will inherit $77 trillion in debt.
She said Nigeria's debt would only reach that level when the CBN Ways and Means advances were securitized.
According to her, the securitization of Ways and Means Advances will allow the DMO to include the debt in the stock of public debt, thus improving debt transparency.
Oniha had explained the projected stock of debt using as a basis the actual stock of government debt of N44 trillion.
She said the total debt stock includes external and domestic debt of the federal government, the 36 state governments and the FCT.
"Given a number of ongoing activities, the total outstanding public debt; that is, the external and internal debts of the federal government, the 36 state governments and the FCT would be around N77 trillion.
"Debts that will be added to the public debt data in 2023 include ways and means advances of 1 trillion naira to finance the Supplementary Budget.
"This has already been approved by the National Assembly (NASS).
"It also includes N22,720,000,000,000,000,000,000,000,000 Ways and Means advances currently under consideration by NASS.
"The projected stock of debt for May 2023 also includes N5.567 trillion, or about 50% 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 FGN arrears and court debts,” NAN quoted it.
According to her, also included are estimates of new borrowing by state governments and the FCT.
"From these figures, it is clear that Ways and Means progress of N22.72 trillion, which represents the funds already spent, is the main source of the increase," Oniha said.
p>
The Debt Management Office (DMO) said the alarm created around the country's projected public debt was unnecessary.
Director-General Ms Patience Oniha said this in a statement to respond to reports that the next government will inherit $77 trillion in debt.
She said Nigeria's debt would only reach that level when the CBN Ways and Means advances were securitized.
According to her, the securitization of Ways and Means Advances will allow the DMO to include the debt in the stock of public debt, thus improving debt transparency.
Oniha had explained the projected stock of debt using as a basis the actual stock of government debt of N44 trillion.
She said the total debt stock includes external and domestic debt of the federal government, the 36 state governments and the FCT.
"Given a number of ongoing activities, the total outstanding public debt; that is, the external and internal debts of the federal government, the 36 state governments and the FCT would be around N77 trillion.
"Debts that will be added to the public debt data in 2023 include ways and means advances of 1 trillion naira to finance the Supplementary Budget.
"This has already been approved by the National Assembly (NASS).
"It also includes N22,720,000,000,000,000,000,000,000,000 Ways and Means advances currently under consideration by NASS.
"The projected stock of debt for May 2023 also includes N5.567 trillion, or about 50% 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 FGN arrears and court debts,” NAN quoted it.
According to her, also included are estimates of new borrowing by state governments and the FCT.
"From these figures, it is clear that Ways and Means progress of N22.72 trillion, which represents the funds already spent, is the main source of the increase," Oniha said.
p>What's Your Reaction?
