According to data released on Tuesday, 7 June by the Debt Management Office (DMO), Nigeria’s total debt as of March 31, 2022, increased to N41.60 trillion from N39.55 trillion as of the end of 2021.
This has proven that between January and March 2021, the federal government, state has borrowed 2.04trillion. Hence, each Nigerian is now owing at least the sum of N201,941 as their share of the country’s debt. It is the most each Nigerian would owe as a function of debt per capita (or debt per person).
This current level indicates a scale in price from N45173 initially owed by every Nigeria as at when January 2013 started to N159,675 at the beginning of 2021.
Citizens debt on the rise
Dividing the debt stock of N41.60 trillion by an estimated population of 206 million according to world bank data, it gives N201,941 as a representation of what the debt per head or debt per capita translates into.
Categorically, the debt has increased by N10,051 when compared to N191,889 which is was as at December 2021.
If non-nigerians are removed from the estimated population, the debt owed by each Nigerian would theoretically increase.
Years of debt increase
As Nigeria’s public debt stock has been on the rise so also the debt per head for Nigerians has been on the increase if the total debt owed by the country is divided per person.
Debt per capita for a year is calculated as what was owed at the end of the previous year, which would be the opening debt stock for that year.
The country’s increasing debt stock has been a source of concern in recent years, with several commentators warning of a potential debt trap which future generations may be saddled with and arguable benefits to be seen from the rapidly increasing borrowing.
It was earlier reported that the IMF raised concern on Nigeria’s growing debt, as it feared that 100 per cent of Nigeria’s revenue could be spent to service debts by the administration that succeeds President Buhari.
The Debt to Citizen ratio, like the Debt to Revenue ratio, is always disregarded by the DMO, but it is used by analysts to give debt stock a human face.
According to Investopedia a financial website:
“When debt is compared in this manner, it becomes plausible for citizens to determine the relative extent of the burden placed by debt on the national budget”
However, in its press release announcing the latest public debt stock, DMO reminded Nigerians that there is room for more loans as it remains sustainable. It said: “The total public debt to GDP is now 23.27 per cent, which is below Nigeria’s self-imposed limit of 40 per cent.
List of 15 projects why Nigeria agreed to N2.50trn loan with China
It was earlier reported that the Debt Management Office (DMO) announced Nigeria’s overall public debt has risen to N38 trillion as of September 30, 2021. The loan from China is one area many Nigerians are interested in amid stories of assets being seized from nations unable to repay their debt. DMO has released a thorough analysis of loans received from China in the last 13 years, including how much has been returned and for what projects the funds were obtained.