Nigeria’s total public debt could rise to 77 trillion naira ($172 billion) this year from 44 trillion naira as of last September, after a loan-to-bond swap and new borrowings to fund the 2023 budget, the Debt Management Office chief said.
The Senate last week put off a decision on the president’s request to convert $53 billion worth of temporary loans to the government from the central bank into 40-year bonds after some lawmakers questioned the plan.
“If that is approved sometime this year …, it means you will be seeing that figure included in the public debt,” debt management chief Patience Oniha said on Wednesday.
President Muhammadu Buhari on Tuesday signed the 2023 budget of 21.83 trillion naira into law and said the country would pay 1.8 trillion naira ($4 billion) in extra interest this year if parliament rejects the loan-to-bond swap request.
Read also: Nigeria’s debt nears N77trn on CBN overdraft, new loans
Finance Minister Zainab Ahmed said total public debt would rise to 35.3% of GDP from 22.97% with the loan conversion.
The conversion and new borrowings would take domestic debt to 70% of total public debt in 2023, from 61.1% currently, Ahmed said.
