The Federal Government’s gross debt profile is projected to grow by 92.11 per cent from N70.85tn in 2022 to N136.11tn in 2026, according to the International Monetary Fund.
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 totalled N38tn as of the end September, 2021.
IMF in the latest report said the projections were sourced from Nigerian authorities and its staff estimates and projections.
In a table titled, ‘Nigeria: Federal Government Operations, 2017–26,’ the IMF said Federal Government’s debt is expected to grow to N70.85tn in 2022, N83.17tn in 2023, N97.80tn in 2024, N115.38tn in 2025, and N136.11tn in 2026.
The IMF said, “Nigeria’s level of public debt increased sharply last year due to the COVID-19 crisis. Public debt had been on an increasing path in the last decade reaching 29 per cent of GDP in 2019 from 9 per cent in 2009, driven by primary deficits as weak non-oil revenue mobilization failed to compensate for falling oil revenues.