Nigeria’s public debt has surged to N144.67 trillion ($94.23 billion) as of December 2024, representing a 48.58% increase from December 2023. The Debt Management Office reports that both external and domestic borrowings drove this growth. External debt rose by 83.89% to N70.29 trillion, while domestic debt increased by 25.77% to N74.38 trillion.
The increase in external debt is attributed to new borrowings and naira depreciation. Domestic debt growth reflects the government’s reliance on local borrowing for budget deficits and infrastructure projects. The Federal Government’s domestic debt component grew significantly from N53.26 trillion to N70.41 trillion, reflecting a 32.19% increase.
On a quarter-on-quarter basis, Nigeria’s total public debt increased by N2.35 trillion, translating to a 1.65% rise from N142.32 trillion as of September 30, 2024. External debt rose by N1.4 trillion, while domestic debt increased slightly by 1.29%. The Federal Government’s domestic debt increased from N69.22 trillion to N70.41 trillion within the quarter.
The debt structure shows external debt accounting for 48.59% and domestic debt 51.41% of the total public debt. The Federal Government holds the majority of both external and domestic debt, with N62.92 trillion ($40.98 billion) in external debt and N70.41 trillion ($45.86 billion) in domestic debt.
The rise in public debt has raised concerns among economic analysts regarding Nigeria’s fiscal stability. The sharp increase, particularly in external debt, highlights the nation’s vulnerability to exchange rate fluctuations and changes in global economic conditions. With the continued depreciation of the naira, the cost of servicing foreign debt could escalate, adding pressure on the country’s financial resources.
