Nigeria is bracing for a potential surge in domestic debt, with indications that it could surpass N57.5 trillion. This follows the recent restructuring of the outstanding balance on the Ways and Means Advances from the Central Bank of Nigeria (CBN).
The Debt Management Office (DMO) revealed that the country’s domestic debt soared by N1.80 trillion, reaching N50.2 trillion by the end of the third quarter of 2023, primarily attributed to heightened borrowings from the bond market.
The country’s domestic debt is set to rise much higher as the Senate approved the securitization of the outstanding N7.3 trillion in Ways and Means Advances in line with President Bola Tinubu’s request.
This legislative endorsement is poised to contribute to a further uptick in the country’s domestic debt. It echoes a pattern observed in previous restructuring efforts.
The Ways and Means Advances allows the government to secure emergency financing from the CBN to address cash flow gaps.
