It has been reported that Nigeria’s total debt stock rose from N32.9 trillion as of December 2020 to N39.6 trillion in November 2021.
According to the 2022 approved budget presented by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, the government borrowed N6.7 trillion between January and November 2021.
Recall that in March 2021, the Debt Management Office disclosed that Nigeria’s total public debt stock was 32.9 trillion as of December 2020, with an additional N6.7 trillion loan, the total debt stock as of November 2021 rose to N39.6 trillion.
At the end of the first quarter of 2021, the DMO reported that the country’s total public debt rose to N33.1 trillion from N32.9 trillion in December 2020, having an increase of about N200 billion.
In the second quarter of 2021, the total debt stock rose to N35.5tn having an increase of N2.4tn.
Additionally, by the third quarter, there was an increase of N2.5 trillion, an increase of N1.6tn from September to November which made the total debts rise to N39.6tn.
However, the minister also justified the debts by the government claiming that the country had a revenue problem and not a debt problem. She added that the debt level was still within sustainable limits.
She further stated that the country had to borrow as it is essential for capital expenditure and human development, noting that the country had witnessed two economic recessions and had to spend its way out of recession.
It is however reported that within the 11-month period, debt servicing gulped N4.2tn which represents 76.2% of the N5.51tn revenue generated during the period.
