“Nigeria’s public debt is set to see an over eightfold increase in the next decade, surging to about N95trn. Including a Central Bank loan approved for securitization by President Bola Tinubu.
Lawmakers approved the request to securitize the N7.3 trillion owed by the federal government to the Central Bank of Nigeria (CBN) on December 30. This inclusion in official data will elevate the country’s public debt stock to at least N95.2 trillion. As of June last year, CBN data indicated that the federal government’s debt to the bank was N4.36 trillion.
Adeola Adenikinju, president of the Nigerian Economic Society, expressed concern about the rising public debt, emphasizing its potential implications. The recent approval for securitization has raised worries among experts about the growing debt levels in Nigeria. Former President Olusegun Obasanjo also raised concerns about debt levels in Nigeria and other African countries, stating that mismanagement of previous debts makes it challenging for administrations to secure similar debt relief in the future.
Source: Business Day