- Nigeria’s total public debt rose to N144.67tn ($94.23bn) by December 31, 2024, marking a 48.58% increase from 2023.
- External debt surged by 83.89% from N38.22tn to N70.29tn due to new borrowings and naira depreciation
- As of December 2024, external debt made up 48.59% of total debt, while domestic debt accounted for 51.41%
Nigeria’s total public debt surged to N144.67tn ($94.23bn) as of December 31, 2024, marking a 48.58% rise compared to N97.34tn ($108.23bn) recorded at the end of 2023.
This is according to the latest debt report released by the Debt Management Office (DMO).
The data also showed a quarter-on-quarter increase of 1.65% from N142.32tn ($88.89bn) in September 2024, highlighting a consistent rise in the country’s debt burden during the final quarter of the year.
On a year-on-year basis, Nigeria’s debt grew by N47.32 trillion, driven by significant increases in both external and domestic borrowings.
External debt skyrockets
The country’s external debt grew by a staggering 83.89%, rising from N38.22tn ($42.50bn) in December 2023 to N70.29tn ($45.78bn) in December 2024.
The sharp increase was largely attributed to new borrowings and the continued depreciation of the naira, which raised the naira value of foreign-currency loans.
Domestic debt rises amid increased government borrowing
Domestic debt also rose by 25.77%, climbing from N59.12tn ($65.73bn) in December 2023 to N74.38tn ($48.44bn) at the end of 2024.
A breakdown shows the Federal Government’s domestic debt grew significantly from N53.26tn to N70.41tn, representing a 32.19% increase.
This suggests a continued dependence on local borrowing to fund budget deficits and capital projects.
Meanwhile, subnational governments showed more caution.
Domestic debt owed by states and the Federal Capital Territory (FCT) dropped by 32.27%, from N5.86tn to N3.97tn during the year.
Quarterly debt movement
Between September and December 2024, Nigeria’s total debt rose by N2.35 trillion, indicating a 1.65% increase.
External debt increased by N1.4tn, from N68.89tn ($43.03bn) to N70.29tn ($45.78bn), due to new loans and further naira devaluation.
On the domestic front, debt rose slightly by 1.29% from N73.43tn to N74.38tn.
The Federal Government’s domestic debt rose marginally from N69.22 trillion in September to N70.41 trillion in December.
However, debt held by states and the FCT declined from N4.21tn to N3.97tn within the same period, representing a 5.69% drop.
Debt composition and concerns
As of December 2024, external debt accounted for 48.59% of Nigeria’s total debt, while domestic debt made up 51.41%, reflecting a relatively balanced debt mix.
A breakdown shows that the Federal Government is responsible for the bulk of the debt, with N62.92tn ($40.98bn) in external debt and N70.41tn ($45.86bn) in domestic debt.
States and the FCT owed N7.37tn ($4.80bn) externally and N3.97tn ($2.58bn) domestically.
The steep rise in public debt, especially foreign debt, has sparked concerns among economists and analysts, who warn that the country’s fiscal stability may be at risk.
With the naira continuing to lose value, the cost of servicing external debt could rise sharply, placing additional strain on Nigeria’s already pressured financial resources.
Nigeria’s public debt increases to N142.3 trillion
Meanwhile, TheRadar earlier reported that Nigeria’s total public debt increased to N142.3 trillion as of September 30, 2024, a 5.97 per cent (N8.02 trillion) increase compared to N134.3 trillion recorded in June 2024.
However, in dollar terms, Nigeria’s total public debt declined by 2.70 per cent, from $91.35 billion in June to $88.89 billion in September 2024.