Nigeria’s total public debt surged to N144.67 trillion ($94.23 billion) by December 31, 2024, marking a 48.58% increase from N97.34 trillion ($108.23 billion) recorded at the end of 2023.
This was revealed in the latest debt report released on Friday by the Debt Management Office (DMO).
Key Highlights:
- Year-on-year rise: N47.32 trillion increase from December 2023.
- Quarter-on-quarter rise: 1.65% increase from N142.32 trillion in September 2024.
The rise in total debt was attributed to significant increases in both domestic and external borrowings, as well as the depreciation of the naira, which raised the local value of dollar-denominated debt.
External debt jumped by 83.89%, rising from N38.22tn ($42.50bn) in 2023 to N70.29tn ($45.78bn) in 2024.
- Federal Government: N62.92tn ($40.98bn)
- States & FCT: N7.37tn ($4.80bn)
Domestic Debt
Domestic debt rose 25.77%, reaching N74.38tn ($48.44bn) from N59.12tn in 2023.
- Federal Government: N70.41tn
- States & FCT: Dropped to N3.97tn, a 32.27% decrease, signaling a more cautious borrowing approach at the subnational level.
Quarterly Trends
Between Q3 and Q4 2024:
- Total debt rose by N2.35tn
- External debt increased by N1.4tn
- Domestic debt edged up by 1.29%
- Federal domestic debt rose slightly, while subnational domestic debt declined by 5.69%
Debt Composition
As of December 2024:
- External debt: 48.59% of total
- Domestic debt: 51.41%
This near-equal split signals a growing dependency on foreign loans, which analysts warn could heighten Nigeria’s vulnerability to currency fluctuations and global economic shocks.
Economists have raised alarms over Nigeria’s ballooning debt, especially in foreign borrowings, warning that continued naira depreciation could make debt servicing more expensive, putting further pressure on the nation’s finances.
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