Nigeria’s total public debt surged by 48.5% year-on-year (YoY), reaching N144.67 trillion ($94.23 billion) in 2024, up from N97.34 trillion ($108.23 billion) in 2023, according to the latest figures released by the Debt Management Office (DMO).
The sharp rise in debt was driven by significant increases in both external and domestic borrowings, with external debt witnessing a staggering 83.89% jump to N70.29 trillion ($45.78 billion) from N38.22 trillion ($42.5 billion) the previous year.
Domestic debt also rose by 25.7% YoY, climbing from N59.12 trillion ($65.73 billion) in 2023 to N74.38 trillion ($48.44 billion) in 2024. Notably, the Federal Government’s share of domestic debt grew by 32% to N70.41 trillion from N53.26 trillion.
In contrast, domestic borrowings by state governments and the Federal Capital Territory (FCT) saw a significant decline, dropping by 32% to N3.97 trillion from N5.86 trillion in the previous year.
The DMO attributed the surge in total debt stock largely to the depreciation of the naira and ongoing fluctuations in exchange rates, which have made external borrowings costlier in naira terms.
Analysts warn that the sharp rise in external debt, combined with a weakening local currency, could intensify the burden of debt servicing on Nigeria’s fiscal resources, potentially impacting capital spending and economic growth.
As the country continues to navigate complex global economic conditions, there are growing calls for a more sustainable debt management strategy and urgent reforms to boost domestic revenue generation.
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