Nigeria’s debt to hit N30tn by 2022

If the plan sails through legislative scrutiny, the Federal Government will be borrowing a fresh N4.6tn within the next three years, covering 2020 to 2022 to push the nation’s debt profile to N29.55 trillion.

The fresh borrowing plan is contained in the Medium Term Framework submitted to the National Assembly by President Muhammadu Buhari, containing the fiscal strategies of the Federal Government for the next three years and is being worked upon by the committees on finance and appropriation.

According to the Ministry of Budget and National Planning, the fresh borrowing is to enable government to carry out its programmes.

The nation’s current debt profile stands at N24.95 trillion.

According to the document, the Federal Government is planning to borrow N1.7tn in the 2020 fiscal period, with the sum of N850bn expected to be sourced locally while the balance of N850bn is expected to be raised from foreign creditors.

In 2021 the government also plans to borrow N1.6tn which would be sourced in equal proportion of N800bn each from domestic and foreign sources, while for 2022, the government projects to raise N1.3tn through debt instruments to finance its operations.

This is made up of foreign borrowing of N650bn and domestic borrowing of N650bn.