Nigeria’s total public debt reached N144.67 trillion ($94.23 billion) by December 31, 2024, marking a 48.58% increase from N97.34 trillion ($108.23 billion) at the end of December 2023, according to the Debt Management Office’s latest report released on Friday, April 4. The report also shows a quarter-on-quarter increase of 1.65%, from N142.32 trillion ($88.89 billion) in September 2024, reflecting a consistent rise in debt levels during the final quarter of the year.
The DMO attributed the surge in public debt primarily to substantial increases in both external and domestic borrowing. 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, driven by new external borrowings and the depreciation of the naira, which inflated the naira value of dollar-denominated loans.
Domestic debt also rose significantly by 25.77%, increasing from N59.12 trillion ($65.73 billion) to N74.38 trillion ($48.44 billion) during the same period. The Federal Government’s domestic debt saw a 32.19% increase, rising from N53.26 trillion to N70.41 trillion, highlighting a growing reliance on local borrowing to finance budget deficits and infrastructure projects.
However, domestic debt held by states and the Federal Capital Territory (FCT) decreased from N5.86 trillion to N3.97 trillion, a 32.27% drop, suggesting a more cautious approach by subnational governments towards borrowing.
On a quarterly basis, public debt rose by N2.35 trillion from September to December 2024. External debt increased by N1.4 trillion, from N68.89 trillion ($43.03 billion) to N70.29 trillion ($45.78 billion), while domestic debt grew slightly by 1.29%, from N73.43 trillion ($45.87 billion) to N74.38 trillion ($48.44 billion). The Federal Government’s domestic debt rose from N69.22 trillion to N70.41 trillion, while debt attributed to states and the FCT fell from N4.21 trillion to N3.97 trillion, a 5.69% decline.
As of the end of 2024, external debt accounted for 48.59% of Nigeria’s total public debt, with domestic debt making up 51.41%. Although this represents a fairly balanced debt structure, concerns have been raised about Nigeria’s increasing reliance on foreign debt to cover funding gaps.
The breakdown of external debt shows that the Federal Government owed N62.92 trillion ($40.98 billion), while states and the FCT held N7.37 trillion ($4.80 billion). For domestic debt, the Federal Government owed N70.41 trillion ($45.86 billion), with states and the FCT accounting for N3.97 trillion ($2.58 billion).
The DMO’s findings have sparked new concerns among economists about Nigeria’s fiscal health. The significant rise in external debt, particularly, highlights the country’s growing vulnerability to exchange rate fluctuations and global economic changes. With the naira continuing to depreciate, the cost of servicing foreign debt may increase further, putting additional pressure on Nigeria’s public finances.