By May 29, 2023, the total amount of Nigeria's debt, which was N44.106 trillion as of the third quarter of last year, is expected to have increased to over N77 trillion.
Government is anticipated to borrow an additional N8 trillion before it leaves office on May 29, despite the fact that the Central Bank of Nigeria's (CBN) "Ways and Means" facility currently has a balance of about N22.3 trillion and an interest rate of 18.5 percent.
On January 4, 2022, Patience Oniha, the Director-General of the Debt Management Office (DMO), announced this.
The nation's debt, according to Patience Oniha, Director-General of the Debt Management Office, already exceeded N44 trillion in September 2022. The amount will be added to the debt as soon as the National Assembly approves the securitization of the CBN's Ways and Means.
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If the new loans are added, the total debt profile will reach N77 trillion, according to her statement.
In addition, more promissory notes will be issued between now and June 2023, adding to the debt profile that was partly inherited from prior governments.
The restructuring of the N22.07 trillion in Ways and Means advances that the CBN provided to the Nigerian government was requested by President Muhammadu in a letter to the National Assembly last week.
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The lawmakers insisted on conducting due diligence before approving the president's request.
According to Zainab Ahmed, minister of finance, budget, and national planning, approving the CBN securitization would be advantageous because the debt's worrying interest rate.
If the request is denied, according to Ahmed, the principal plus interest will increase by approximately N1 point 8 trillion to N2 point 2 trillion.
According to The Punch, The Ways and Means Advance by CBN is a loan program that the Central Bank of Nigeria uses to cover budgetary gaps in the country.
Out of its total spending of N12.87 trillion for the same period, Ahmed claimed that the Nigerian government spent roughly N5.24 trillion on debt servicing alone. She claimed that domestic debt accounted for N2.5 trillion, foreign debt for N1.08 trillion, and interest on CBN loans for N1.64 trillion.
Regardless of the nation's restructuring plan, the World Bank had predicted that Nigeria's borrowing from the CBN would consume 62% of governmental revenue by 2027.