DMO noted that the country’s debt stock is within sustainable limits at 37.1 per cent but is nearing a point where it has little space for borrowing. It said, “The Country’s Debt stock remains sustainable under these criteria, but the borrowing space has been reduced when compared to Nigeria’s self-imposed debt limit of 40 percent set in the MTDS, 2020-2023.”
It stressed, “It is recommended that this should not be used as a basis for higher level of borrowing as was the case in the 2023 Budget. This is because the outcome of the Shock Scenario, which is more realistic in the circumstances, exceeded the self-imposed limit.” The report read in part, “The 2022 MAC-DSA exercise used the Gross Public Debt, that is, the General Government Debt, comprising the External and Domestic Debts of the FGN, thirty-six States and the Federal Capital Territory.