Nigeria’s debt profile to hit N38.68 trillion in 2021

By Tunde Opalana

Based on existing approvals, Nigeria’s total public debt stock will hit N38.68 trillion by December 31, 2021.

This comprises the external and domestic debts of the federal and state governments as well as the Federal Capital Territory (FCT).

Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, gave this projection Tuesday at the 2021 budget defence of the ministry and its agencies before the Senate Committee on Local and Foreign Debts.

According to the minister, the total external debt is expected to rise to N14,207 trillion while total domestic debt is put at N24.476 trillion putting the ratio of total public debt on gross domestic product at 27.11%.

Painting the picture of expected astronomical rise in the debt profile, Ahmed said “the total public debt stock which stood at N31.01 trillion (US Dollars 85.90bn) as at June 30,2020.

It is projected, based on existing approvals, to rise to N32.51 trillion by December 31,2020 and N38.68 trillion by December 31,2021.”

Speaking on the 2021 budget proposal as enumerated in the submission on the Debt Management Office, the minister said “the 2021 appropriation bill provides for new borrowing of N4,281.17 billion.

The new borrowing is broken down equally between domestic borrowing (N2,140.58 billion) and external borrowing (N2,140.58 billion).

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According to Ahmed, the total new borrowing of N4,281.17 billion will take care of 95.43% of total deficit for the 2021 appropriation.

The minister further disclosed that the2021 appropriation bill has a provision of N3,124.38 billion for debt service with domestic debt service amounting to N2,183.49 billion while external debt service has a provision ofN940.89 billion.