Nigeria’s total public debt may hit N38.68 trillion by December 2021, the Minister of Finance, Budget and National Planning, Zainab Ahmed, has said.
The projection, she said, is based on existing approvals.
The minister stated this on Tuesday when she appeared before the Senate Committee on Local and Foreign Debts.
Her comments come amidst growing concerns over Nigeria’s debt stock. This is even as the nation plans to fund the 2021 budget deficit with N4.28 trillion new borrowings which represents about one-third of the proposed budget.
In the 2021 budget presented to the National Assembly in October, President Muhammadu Buhari proposed N13.08 trillion expenditure for the next fiscal year. He also announced that total federally distributable revenue is estimated at N8.433 trillion in 2021 while the total revenue available to fund the 2021 Federal Budget is estimated at N7.886 trillion.
In her presentation, Ms Ahmed said the total public debt stock comprising the external and home debts of the federal and state governments and the Federal Capital Territory stood at N31.01 trillion ($85.90 billion) as of June 30.
“It is projected, based on existing approval, to rise to N32.51tn by December 31, 2020 and N38.68tn by December 31, 2021.”
She further explained that the proposed N4,28 billion borrowing, was broken down equally between Domestic Borrowing of N2.14 billion and External Borrowing of N2.14 billion.