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NIGERIA: Nigeria’s Public Debt Jumps To N144.67tn In 2024, A 48.58% Increase

Business

By Ameenat Hamzat, Lagos, Nigeria

Nigeria’s public debt has risen to N144.67 trillion ($94.23 billion) as of December 31, 2024, marking a 48.58% increase from N97.34 trillion ($108.23 billion) in December 2023, according to the latest report from the Debt Management Office (DMO).

The report, released on Friday, shows that Nigeria’s debt also increased by 1.65% in the final quarter of 2024. From N142.32 trillion ($88.89 billion) in September 2024, it grew by N2.35 trillion to reach the year-end total of N144.67 trillion.

The rise in debt was mainly due to a significant increase in both external and domestic borrowings. External debt jumped by 83.89%, from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) in December 2024. This increase was driven by new foreign loans and the depreciation of the naira, which raised the naira-equivalent value of dollar-denominated debt.

Domestic debt also saw a 25.77% rise, moving from N59.12 trillion ($65.73 billion) in December 2023 to N74.38 trillion ($48.44 billion) by December 2024. The Federal Government’s domestic debt accounted for most of this growth, rising by 32.19%, from N53.26 trillion to N70.41 trillion, as the government continued to rely on local borrowing for budget financing and infrastructure projects.

Meanwhile, domestic debt held by states and the Federal Capital Territory (FCT) decreased by 32.27%, from N5.86 trillion to N3.97 trillion, indicating a more cautious approach to debt accumulation by some regional governments.

The DMO report also highlighted the ongoing increase in Nigeria’s reliance on external debt, with the external debt share now making up 48.59% of the total public debt, while domestic debt accounts for 51.41%. This shows a nearly balanced debt structure, though external debt has been growing at a faster rate.

Experts have expressed concerns over Nigeria’s growing debt burden, particularly the increase in external borrowing, as it exposes the country to risks from exchange rate fluctuations and changes in global financial conditions.

With the naira’s continued depreciation, the cost of servicing foreign debt is expected to rise, adding pressure on Nigeria’s finances.