They, however, noted that the onus is on the federal government to make productive use of the borrowed funds to improve GDP growth and, by extension, ensure economic development.“The 2022 FGN budget has been pegged at N16.4 trillion. The FGN aims to earn N10.13trn to fund the budget and the resulting deficit of N6.3trillion is expected to be financed by new external and domestic borrowing, privatisation proceeds, and multilateral /bilateral loan drawdowns.
Coronation Merchant Bank analysts noted that by the end of September, the public debt was equivalent to 24.9 per cent of 2020 nominal GDP. In the first nine months of 2021, Nigeria spent N2.5 trillion on debt servicing payments – N1.7 trillion on servicing domestic debts and N755 billion spent on external debt servicing.
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