Nigeria's debt reaches a news high, big problem for the incoming president

According to the Debt Management Office (DMO), Nigeria's total public debt increased from 39.56 trillion Naira to 46.25 trillion Naira ($103.1 billion) in 2022. This rise in debt is attributed to the government's increased borrowing to finance its budget deficit. However, Nigeria's debt-to-GDP ratio remained within the country's self-imposed limit of 40%, standing at 23.2% in 2022, compared to 22.47% the previous year.

The head of the DMO, Patience Oniha, stated in January that Nigeria's total public debt could potentially increase to 77 trillion Naira this year if parliament approves a central bank temporary advance to the government to be swapped to bonds along with new borrowings to fund the 2023 budget.

With Nigeria's debt reaching a new high, the incoming president Tinubu will have a lot of work to do to get the country back running. Nigeria owes a lot of money and that means that the country is suffering financially, the oil that the country depends on is not well managed. As a result, Nigeria owes so much money and the interest keeps growing.