Nigeria’s Debt Management Office (DMO) on Thursday said that the next administration will inherit a public debt of N77 trillion if the N23 trillion loans from the Central Bank of Nigeria (CBN) are securitised.
The Director-General of the DMO, Patience Oniha, made this known in a statement on Thursday.
In recent weeks, there have been heated debates on the sustainability of Nigeria’s debt amid shrinking revenue and mounting CBN loans.
Last week, President Muhammadu Buhari requested a delayed approval for the N23.7 trillion loan that had already been spent, causing an uproar in the Senate. Lawmakers rejected the request and accused the president of violating the constitution. They also demanded details of how the money was spent.
In her statement Thursday, Mrs Oniha noted that Nigeria’s total debt stock rose to N44.06 trillion as of the end of September 2022, largely reflecting the weakness of the local unit, Naira.
She added, however, that should the CBN loans be added to the debt profile, the nation’s debt portfolio would increase significantly.
“Considering reports that the next administration may inherit a total public debt stock of about N77 trillion, the estimated figure can be expected only if the Ways and Means Advances from the Central Bank of Nigeria are securitized,” she said.
“Nevertheless, it should be noted that the securitization will enhance debt transparency as the DMO will then be able to include the debt in the total public debt stock.