Next govt may inherit a public debt of N77 trillion- DMO

Nigeria’s Debt Management Office (DMO) revealed that the next administration might inherit a public debt of N77 trillion if the Ways and Means Advances from CBN are securitized.

This was disclosed in a statement by the DMO Director-General, Mrs Patience Oniha, on Thursday night reacting to reports over public debt stock of the next presidential administration.

Oniha added that securitization will enhance debt transparency as the DMO can include the debt in the total public debt stock.

Securitization: She said, the estimated figure of N77 trillion quoted in the media can only be possible through securitization of Ways and Means advances.

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

“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.

She added that public debt by May 2023 (new administration) would comprise the total public debt of N44 trillion and Ways and Means Advances of N22.72 trillion currently under consideration by lawmakers.

“If securitization is achieved, a brief breakdown of the estimated total public debt stock by May 2023 may comprise of the following:
“Current total public debt stock of N44.06 trillion; The Ways and Means Advances of N22.72 trillion currently under consideration by National Assembly.

“The projected debt stock for May 2023 at about N5.567 trillion, representing about 50% of the new borrowing of N11.134 trillion in the 2023 Appropriation Act;

“The N1 trillion Ways and Means Advances to finance the supplementary budget already approved by the National Assembly.