• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Monday, June 9, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Nigeria’s Debt Stock Grows By 20% To Hit N46.25trn

. . . As rising profile shrinks funding for infrastructure, economic devt-Experts

by Mark Itsibor and Olushola Bello
2 years ago
in Business, Cover Stories
debt
Share on WhatsAppShare on FacebookShare on XTelegram

 Following the rise in the country’s debt by 20 per cent in the Q4 of 2022, experts have warned that the continuous rise in the nation’s debt profile will create less resources for infrastructure development and economic growth.

According to a latest figure by the Debt Management Office (DMO), Nigeria’s debt stock hit the upward curve in the fourth quarter 2022, hitting a N46.25 trillion or $103.11 billion.

Advertisement

On his part, the director of Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf stated that the implication of Nigeria’s debt profile is the burden of servicing the debt, which has been on an increase, adding that, “this means that less resource is available for development of the economy; investment in infrastructure; and investment in the social services.”

He also noted that, it has a crowding out effect in the financial market for the private sector, saying, “the implication of high debt service is that level of borrowing will be increasing and most of the borrowing is done domestically.

“Also, it creates a visual circle indebtedness or debt trap because as the debt profile in increasing, the burden of debt service is increasing also. Already close to 80 per cent of our revenue is used to service debt. If the debt continues to increase that means more of our resource will be used to service debt.”

According to Yusuf, “this is a challenging situation and the way out of this is for us to see how we can pursue more rigorously the fiscal consolidation. Looking at how we can boost our revenue and the level of revenue coming to government is extremely low for the size of our economy.

RELATED

We’ll Maintain Sale Of Cement Price At N3500 In 2024 — BUA Chair

Deepen Investments, Partnership With Nigeria, BUA Group Chairman Urges Britain, Allies

4 hours ago
Green Energy Strengthens Pipeline Protection With New Onshore Terminal

Green Energy Completes First Crude Oil Export From Otakikpo Terminal

4 hours ago

“We need to do a lot more and one of things we can do is to unlock more revenue by addressing the issue of subsidy, with this we should be able to unlock about N7 trillion or more.

“Also putting an end to foreign exchange subsidy we should be able to unlock some revenue of about N4 trillion; increase oil output and address the issue of corruption.”

He explained that, “this will enable us to use our money in a transparent and productive manner. We need to check the quality of our spending. This is not only a revenue issue but also an expenditure issue. We need to cut down on the cost of governance.”

Similarly, the national president/chairman of Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Ide Udeagbala said: “it is now obvious that the current levels of debt servicing payments are considerably too high and unsustainable given the dwindling government revenues. We call for urgent structural reforms of our economy towards transformational production economy and effective and efficient management of our debts profile to enhance the productivity level of the country.”

Udeagbala added that, “as the leading member of the Organized Private Sector, NACCIMA strongly advocate once again for less dependence on debt financing and ensure effective implementation of the budget to address the productivity challenges of the economy.”

He stressed the need for fiscal policies and public expenditure controls at various government levels as this will help keep the nation’s debt profile in check and make available resources to fund other government priority projects.

Earlier, DMO said, the N46.25 trillion or $103.11 billion debt consists of the domestic and external total debt stock of the federal government, and the sub-national governments (36) state governments and the Federal Capital Territory.

A detailed look into the figures showed that Nigeria recorded N2.19 trillion debt increase within the last quarter of 2022 (Q4), a steep departure from the N44.06 trillion that was recorded in third quarter (Q3) of the same year ended. That is a 20 percent growth rate in the quarter under revenue.

In terms of composition, total domestic debt stock was N27.55 trillion ($ 61.42 billion) while total external debt was N18.70 trillion ($ 41.69 billion). The comparative figure for December 31, 2021, is N39.56 trillion or $95.77 billion.

The debt office gave reasons for the increase in the total public debt to include new borrowings by the federal and sub-national governments, primarily to fund budget deficits and execute projects.

The issuance of Promissory Notes by the federal government to settle some liabilities also contributed to the growth in the debt stock.

LEADERSHIP recalls that the National Assembly was yet to grant approval for securitization of the N23.77 trillion Central Bank of Nigeria’s ‘Ways and Means’ borrowing to the federal government, a development that would jack up the debt ratio for Nigeria.

President Muhammadu Buhari had asked the National Assembly to approve the securitization of the ‘Ways and Means’ for easy debt servicing, an approval that is yet to be granted by the lawmakers.

On-going efforts by the government to increase revenues from oil and non-oil sources through initiatives such as the finance Acts and the strategic revenue mobilization initiative are expected to support debt sustainability.

Meanwhile, the total public debt to gross domestic product (GDP) ratio for December 31, 2022, was 23.20 per cent and indicates a slight increase from the figure for December 31, 2022, at 22.47 per cent.

The ratio of 23.20 per cent is within the 40 per cent limit self-imposed by Nigeria, the 55 per cent limit recommended by the World Bank/International Monetary Fund, and, the 70 per cent limit recommended by the Economic Community of West African States.


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel

START EARNING US DOLLARS as a Nigerian ($35,000) monthly. Companies are sacking their workers due to AI (artificial intelligence), business owners are in panic mode. Only the smart will make it. Click here


Tags: Debt
SendShareTweetShare
Previous Post

Bandits Take 49 Niger Villagers To Zamfara Forest, Demand N30m Ransom

Next Post

UBA Profit Hits N201bn In 2022, Declares 90k Final Dividend

Mark Itsibor and Olushola Bello

Mark Itsibor and Olushola Bello

You May Like

We’ll Maintain Sale Of Cement Price At N3500 In 2024 — BUA Chair
Business

Deepen Investments, Partnership With Nigeria, BUA Group Chairman Urges Britain, Allies

2025/06/09
Green Energy Strengthens Pipeline Protection With New Onshore Terminal
Business

Green Energy Completes First Crude Oil Export From Otakikpo Terminal

2025/06/09
Delta Flood Victims Receive Relief Materials, Palliatives From NDDC
Business

Pollution: NDDC Launches Tree Planting Campaign In 9 States

2025/06/09
I Don’t Take This Award For Granted – Dangote, Person Of The Year 2024
Business

‘Dangote Group Paid N450bn Taxes In 2024’

2025/06/09
NICA Applauds FG On Creation Of National Credit Guarantee Company, Assures Support
Business

NICA Applauds FG On Creation Of National Credit Guarantee Company, Assures Support

2025/06/09
Ways To Retain Existing Customers For Business  Continuity
Business

5 Listed Firms Raise N108bn Commercial Paper To Boost Working Capital

2025/06/09
Leadership Conference advertisement

LATEST

Security Operatives Rescue 11 Kidnap Victims In Katsina

Tinubu’s Public Affairs Aide, Aliyu Audu, Resigns

Fan Dies After Fall During Portugal, Spain Match

Cult Clash: Pandemonium In Edo Community As Lawmaker Debunks Link

Anambra Govt To Establish South East Digital Tribe

Wife Seeks State, FG’s Help To Find Missing Husband

UNOC: Diri Calls For Action To Tackle Rising Ocean Threats

Insecurity: COAS Boosts Morale Of Frontline Troops, Harps On Professionalism

Akwa Ibom: 2 Ethnic Nationalities In War Of Words Over Ex– Gov Emmanuel’s Scorecard

Over 30 Children Disappear ln Delta Community Within 5 Months

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.