Nigeria’s public debt climbs to N144.67 trillion
As of December 31, 2024, Nigeria’s total public debt surged to N144.67 trillion ($94.23 billion), marking a 48.58% increase from the N97.34 trillion ($108.23 billion) recorded in December 2023.
This data was disclosed in the latest report from the Debt Management Office, which outlined the country’s public debt profile.
The report further highlighted a 1.65% quarter-on-quarter rise, from N142.32 trillion ($88.89 billion) recorded at the end of September 2024, underlining the ongoing rise in Nigeria’s debt burden through the last quarter of the year.
On a year-on-year basis, the country’s public debt rose by N47.32 trillion, reflecting a 48.58% increase from December 2023 to December 2024.
The significant rise in public debt was mainly driven by a sharp increase in both external and domestic borrowings.
Nigeria’s external debt grew by 83.89%, from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) in December 2024. This spike was attributed to both new external borrowings and the depreciation of the naira, which increased the naira equivalent of dollar-denominated debt.
Meanwhile, domestic debt also saw a rise of 25.77%, growing from N59.12 trillion ($65.73 billion) in December 2023 to N74.38 trillion ($48.44 billion) by the end of 2024.
The Federal Government’s share of domestic debt increased significantly by 32.19%, from N53.26 trillion to N70.41 trillion, indicating the government’s increasing reliance on local borrowing to finance budget deficits and infrastructure projects. On the other hand, the domestic debt owed by states and the Federal Capital Territory (FCT) decreased by 32.27%, dropping from N5.86 trillion to N3.97 trillion, suggesting a more cautious approach by some subnational governments toward borrowing during the year.
Comparing quarter-on-quarter figures, Nigeria’s total public debt grew by N2.35 trillion, or 1.65%, from N142.32 trillion in September 2024.
This rise was driven by both external and domestic debt increases. External debt rose by N1.4 trillion, from N68.89 trillion ($43.03 billion) in September to N70.29 trillion ($45.78 billion) in December. This increase was fueled by new foreign loans acquired in the last quarter of the year, in addition to the further weakening of the naira.
Domestic debt saw a slight rise of 1.29%, growing from N73.43 trillion ($45.87 billion) to N74.38 trillion ($48.44 billion) over the same period.
The Federal Government’s domestic debt increased from N69.22 trillion to N70.41 trillion during the quarter. However, the debt owed by states and the FCT dropped from N4.21 trillion to N3.97 trillion, marking a 5.69% decline.
As of December 2024, external debt made up 48.59% of Nigeria’s total public debt, while domestic debt accounted for 51.41%, reflecting a relatively balanced debt structure. However, the growing reliance on external borrowings raises concerns about the country’s vulnerability to exchange rate fluctuations and global economic shifts.
The breakdown of external debt shows the Federal Government owed N62.92 trillion ($40.98 billion), while states and the FCT held N7.37 trillion ($4.80 billion). In terms of domestic debt, the Federal Government’s debt stood at N70.41 trillion ($45.86 billion), while states and the FCT owed N3.97 trillion ($2.58 billion).
The sharp rise in public debt, particularly external debt, has raised concerns among economic analysts about Nigeria’s fiscal stability. With the continued depreciation of the naira, there are fears that the cost of servicing foreign debt could escalate, further straining the country’s financial resources.
