CBN LOANS: ACCORDING TO DMO, NIGERIA’S DEBT WILL REACH N77 TRILLION.

The Nigerian Debt Management Office (DMO) said on Thursday that if the Central Bank of Nigeria (CBN) loans are securitized, the next administration will inherit a public debt of N77 trillion.

Patience Oniha, Director-General of the DMO, announced this in a statement on Thursday.

In recent weeks, there have been heated debates about the sustainability of Nigeria’s debt in the face of shrinking revenue and mounting CBN loans.

President Muhammadu Buhari requested a postponement of approval for the N23.7 trillion loan that had already been spent last week, causing a ruckus in the Senate. The request was rejected by lawmakers, who accused the president of violating the constitution. They also wanted to know how the money was spent.

Mrs. Oniha stated on Thursday that Nigeria’s total debt stock had risen to N44.06 trillion as of the end of September 2022, owing largely to the weakness of the local currency, the Naira.

She added, however, that if the CBN loans are included in the debt profile, the country’s debt portfolio will grow significantly.

“Considering reports that the next administration may inherit a total public debt stock of about N77 trillion, the estimated figure can only be expected if the Central Bank of Nigeria’s Ways and Means Advances 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.

“If securitization is successful, a brief breakdown of the estimated total public debt stock by May 2023 may include the current total public debt stock of N44.06 trillion, as well as the Ways and Means Advances of N22.72 trillion currently under consideration by lawmakers.”

The DMO boss also stated that the projected debt stock for May 2023 is N5.567 trillion.

This represents approximately 50% of the new borrowing of N11.134 trillion in the 2023 Appropriation Act; the N1 trillion Ways and Means Advances to finance the already approved supplementary budget; the new Promissory Notes estimated at N1.5 trillion to be issued to settle FGN arrears and judgment debts; and the estimated new borrowings by subnationals for the same period.