The Debt Management Office (DMO) has said that the alarm
created around the country’s projected public debt was unnecessary.
The Director-General, Mrs Patience Oniha, said this in a
statement to react to reports that the next government would inherit N77
trillion debts.
She stated that Nigeria’s debt would only attain that level
when the Ways and Means Advances from the CBN were securitised.
According to her, the securitisation of the Ways and Means
Advances will enable the DMO to include the debt in the public debt stock
thereby improving debt transparency.
Oniha had explained the projected debt stock using the
actual public debt stock of N44 trillion as a basis.
She stated that the total debt stock included external and
domestic debts of the Federal Government, the 36 state governments and the FCT.
“Taking into account a number of on-going activities, the
total public debt stock; that is the external and domestic debts of the Federal
Government, the 36 state governments and the FCT would be about N77 trillion.
“The debts that will be added to the public debt data in
2023 include the N1 trillion Ways and Means Advances to finance the
supplementary budget.
“This has already been approved by the National Assembly
(NASS).
“It also includes N22.72 trillion Ways and Means Advances
currently under the consideration by the NASS.
“The projected debt stock for May 2023 also includes N5.567
trillion, representing about 50 per cent 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 arrears of the FGN and judgement debts,’’ NAN
quoted her as saying.
According to her, also included are estimates for new
borrowings by state governments and the FCT.
“From these figures, it is clear that the Ways and Means
Advances of N22.72 trillion which represents funds already spent, is the
largest source of the increase,’’ Oniha stated.
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