After a loan-to-bond swap and new borrowings to fund the 2023 budget, Nigeria’s total public debt could increase this year to 77 trillion naira ($172 billion) from 44 trillion naira as of last September, according to the head of the debt management office.
Following concerns raised by some senators, the Senate postponed its decision last week on the president’s request to convert $53 billion in temporary loans from the central bank to the government into 40-year bonds.
According to debt management chief Patience Oniha, if that is approved sometime this year, you will see that amount included in the national debt.
President Muhammadu Buhari signed the budget for 2023, which totals 21.83 trillion naira, into law on Tuesday. He also threatened that if parliament rejects the request for a loan-to-bond swap, the nation will pay an additional 1.8 trillion naira ($4 billion) in interest this year.
According to Finance Minister Zainab Ahmed, the loan conversion will cause the total public debt to increase from 22.97% of GDP to 35.3% of GDP.
According to Ahmed, the conversion and additional borrowings would raise domestic debt from its current level of 61.1% of the total public debt to 70% by 2023.
($1 = 448.51 naira)
