The International Monetary Fund says the Federal government’s gross debt is to grow by 92.11 percent from N70.85tn in 2022 to N136.11tn in 2026.
The Washington -based lender made this projection in a report titled ‘Nigeria Staff Report for the 2021 Article IV Consultation.”
According to the fund, the gross debt figures of the Federal Government and the public sector include overdrafts from the Central Bank of Nigeria, promissory notes and AMCON debt. This means debt including Ways and Means have been factored into the total debt profile of the government.
The Debt Management Office put Nigeria’s public debt at N38tn as at the end of September, 2021.
IMF in the latest report said the projections were sourced from Nigerian authorities and its staff estimates and projections.
“In 2020, the sharp decline in oil revenues increased public debt further to 35 percent of GDP. The debt-to-GDP ratio is expected to increase in the medium term to 43 per cent of GDP, despite favourable growth-interest rate dynamics. Gross financing needs are expected to increase to 8.9 per cent of GDP in 2021 from 7.3 per cent in 2020, and to 11.4 per cent in the medium term.”
Within the period under review, the Washington-based lender also projects that government spending will rise by 69.91 per cent from N17.24tn in 2022 to N29.29tn in 2026.
In January, the President, Muhammadu Buhari signed the 2022 Budget into law. The budget provides for government spending of up to N17.13tn.
