Nigerian govt to borrow N12tn, total debt to hit N50tn by 2023

The Federal Government is planning to borrow N12 trillion between now and 2023.

If achieved this will push Nigeria’s public debt stock to N50.22 trillion by 2023, with domestic debt at N28.75 trillion and external debt at N21.47 trillion

The borrowing plans are contained in the new National Development Plan 2021-2025 unveiled by President Muhammadu Buhari last week.

However, the Buhari administration is hoping there would be a significant reduction in total public debt by 2025.

A tabular illustration in the document showed that the government targets N39.59tn debt stock for 2021, N46.63tn for 2022, N50.22tn for 2023, N50.53tn for 2024, and N45.96tn by 2025.

The government also discloses that it needs money to finance the plan of N348.1tn, and the borrowing framework in the plan is 45 percent each for both foreign and domestic borrowing.

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The plan read in part, “The plan will require an investment of about N348.1tn to achieve the plan objectives within the period of 2021-2025.

” It is estimated that the government capital expenditure during the period will be N49.7tn (14 per cent) while the balance of N298.3tn (86 per cent) will be incurred by the Private Sector.

“Of the 14 per cent, government contribution, FGN capital expenditure will be N29.6tn (9 per cent) while the sub-national governments’ capita

“The borrowing framework in the plan is 45 per cent each for both foreign and domestic borrowing while the other financing sources account for 10 per cent.

“Domestic bonds and concessional external loan financing, amongst others, will account for the borrowing strategies for the plan.

“Thus, the government will improve on current debt management strategies to ensure sustainability,” it said.

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