The Federal Government expects its public debt stock to reach N50.22 trillion by 2023, with domestic debt at N28.75 trillion and external debt at N21.47 trillion.
This is based on projections from the National Development Plan 2021-2025.
According to the Debt Management Office, Nigeria’s public debt stood at N38 trillion at the end of the third quarter of 2021, with the total debt stock increasing by N2.540 trillion in the three months from July to September 2021.
According to the Punch, This demonstrates thet administration of President Muhammadu Buhari intends to accumulate approximately N12 trillion in debt over the next two years, from 2021 to 2023.
However, according to the plan, the government intends to reduce total public debt by 2025.
According to a table in the document, the government’s debt stock is expected to be N39.59tn in 2021, N46.63tn in 2022, N50.22tn in 2023, N50.53tn in 2024, and N45.96tn in 2025.
The government also discloses that money is required to fund the N348.1tn plan, and the borrowing framework in the plan is 45 percent for both foreign and domestic borrowing.
The plan read in part, “The plan will require an investment of about N348.1tn to achieve the plan objectives within the period of 2021-2025.”
“It is estimated that the government capital expenditure during the period will be N49.7tn (14 per cent) while the balance of N298.3tn (86 per cent) will be incurred by the Private Sector. Of the 14 per cent, government contribution, FGN capital expenditure will be N29.6tn (9 per cent) while the sub-national governments’ capita
“The borrowing framework in the plan is 45 per cent each for both foreign and domestic borrowing while the other financing sources account for 10 per cent. Domestic bonds and concessional external loan financing, amongst others, will account for the borrowing strategies for the plan. Thus, the government will improve on current debt management strategies to ensure sustainability.”