Nigeria’s debt to hit N50tn as FG mulls borrowing additional N12trn
Nigeria’s public debt stock is set to rise to N50.22 trillion by 2023, with domestic debt currently at N28.75 trillion and external debt at N21.47 trillion, as the Federal Government mulls borrowing additional N12 trillion between now and 2023.
The debt projection is based on the new National Development Plan 2021-2025 which was unveiled by President Muhammadu Buhari last week.
According to the development plan the projection, the federal government targets N39.59tn debt stock for 2021, N46.63tn for 2022, N50.22tn for 2023, N50.53tn for 2024, and N45.96tn by 2025.
It indicated that government would need money to finance the plan of N348.1tn, with the projected borrowing framework pegged at 45 percent each for both foreign and domestic borrowing.
The document reads in part, “The plan will require an investment of about N348.1tn to achieve the plan objectives within the period of 2021-2025.
”It is estimated that the government capital expenditure during the period will be N49.7tn (14 per cent) while the balance of N298.3tn (86 per cent) will be incurred by the Private Sector.
“Of the 14 per cent, government contribution, FGN capital expenditure will be N29.6tn (9 per cent) while the sub-national governments’ capita.
“The borrowing framework in the plan is 45 per cent each for both foreign and domestic borrowing while the other financing sources account for 10 per cent.
“Domestic bonds and concessional external loan financing, amongst others, will account for the borrowing strategies for the plan.
“Thus, the government will improve on current debt management strategies to ensure sustainability,”
The federal government however expects that there would be a significant reduction in total public debt by 2025.
