The Debt Management Office (DMO) plans to borrow an additional N6.39 trillion to finance the 2022 budget deficit which will consequently increase the total debt stock of Nigeria to N45 trillion.
9news Nigeria reported on Thursday in accordance to the statement issued by DMO Director-General Patience Oniha, that Nigeria’s external and domestic debt rises to N39.55 trillion as at December 2021.
The statement indicates a 4.1% or N1.55 trillion depth increase in 3 months compared to the N38 trillion total public debt that was recorded as at September 2021.
She further stated that new borrowings by both the Federal Government and State Governments attributed to the increased public debt.
Meanwhile in a DMO document obtained on Friday, Oniha explained that the overall deficit in the 2022 budget was N6.30trillion, representing 3.46 per cent of the country’s Gross Domestic Product (GDP).
Mrs Oniha explained that the budget deficit was to be financed mainly by borrowings from domestic and foreign sources and privatisation proceeds.
She explained, “N2.57 trillion will come from domestic sources, N2.57 trillion from foreign sources, N1.16 trillion from multilateral and bilateral loan drawdowns and N90.7 billion from privatisation proceeds.”
Speaking further on the 2022 budget, Mrs. Oniha said the 2022 aggregate federal government’s spending was projected at N17.1 trillion, 18 per cent higher than the 2021 budget.
“Recurrent (non-debt) spending, estimated to amount to N6.9 trillion, is 40 per cent of total expenditure and 20 per cent higher than the 2021 budget,” added Ms Oniha.
“Aggregate capital spending of N5.96 trillion is 35 per cent of total expenditure.”
According to the DMO official, debt service in the 2022 budget is N3.6 trillion, making it 21 per cent of total expenditure and 34 per cent of total revenue.
“Provision to retire maturing bonds of N270.7 billion to local contractors is 1.6 per cent of total expenditure.
This provision is in line with the federal government’s commitment to offset accumulated arrears of contractual obligation dating back over a decade,’’ she said.
9news Nigeria
