Why There Was Huge Increase In Domestic Debt – DMO

The Debt Management Office (DMO) said on Thursday that the inclusion of the N22.719tn securitised Ways and Means advances was responsible for the increase in Nigeria’s debt stock, especially the domestic stock.

There were concerns by economists and analysts over the huge Ways and Means issued by the Central Bank of Nigeria, under Godwin Emefiele, to the former administration of President Muhammadu Buhari, especially as the CBN’s action contravened the fiscal regulations guiding such interventions.

The DMO however said in a statement on Thursday that there was a sharp increase in the total domestic debt stock between December 2022 and June, 2023.

It said the total domestic debt of N55.93tn it earlier published was the figure for September 30, not for December 30.

It added, “The attention of the DMO has been drawn to some comments in the media on Nigeria’s debt stock figures as of September 30. The increase in the total domestic debt stock between June 30 and September 30 was 3.3 per cent.

“The total domestic debt grew sharply between December 2022 and June (2023) due to the inclusion of the securitised Ways and means advances which was added to the debt stock in June.”

The DMO said on Wednesday that the total country’s public debt stock hit N87.91tn ($114.35bn) as of September 30.

The amount represents the domestic and external debts of the Federal Government, the 36 state governments and the Federal Capital Territory (FCT).

The N87.91tn debt stock represents a marginal increase of 0.61 per cent when compared to the June figure of N87.38tn.