Debt Crisis Deepens: Nigeria Owes N144.67tn

Nigeria’s public debt has reached a staggering N144.67 trillion as of December 2024, marking a 48.58 percent increase from the N97.34 trillion recorded at the end of 2023, according to the latest report by the Debt Management Office (DMO).

A year-on-year analysis reveals that the country’s debt stock rose by N47.32 trillion, underlining the persistent growth of Nigeria’s financial obligations. On a quarterly basis, the debt burden climbed 1.65 percent from N142.32 trillion in September 2024.

The DMO attributed the sharp rise to increased external and domestic borrowing, as the federal government continues to grapple with revenue shortfalls and growing budgetary needs.

External debt surged by 83.89 percent, climbing to N70.29 trillion in December 2024 from N38.22 trillion in the same period the previous year. Meanwhile, domestic debt rose by 25.77 percent to N74.38 trillion, up from N59.12 trillion recorded at the end of 2023.

A breakdown of the external debt shows the federal government owes N62.92 trillion ($40.98 billion), while states and the Federal Capital Territory (FCT) are responsible for N7.37 trillion ($4.80 billion). For domestic debt, the federal government accounts for N70.41 trillion ($45.86 billion), with states and the FCT owing N3.97 trillion ($2.58 billion).

The rising debt profile has sparked concern among economic analysts. Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), criticized the growing debt amid Nigeria’s significant infrastructure deficits.

He warned that the debt trajectory poses a serious threat to fiscal sustainability and economic stability.

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