Nigeria public debt increased to N144.67tn ($94.23bn) as of December 31, 2024, a 48.58 per cent increase from the N97.34tn ($108.23bn) at the end of December 2023. This was disclosed by the Debt Management Office in its latest report on the nation’s debt profile published on Friday, April 4.
The report also found a quarter-on-quarter growth of 1.65 per cent to N142.32tn ($88.89bn) as of September 2024, and pointed out an enhancing growth in debt levels in the fourth quarter of the year.
According to the DMO, “The public debt growth was largely triggered by sharp upticks in both external and domestic borrowing.” Nigeria’s external debt has grown 83.89 per cent from N38.22tn ($42.50bn) at December 2023 to N70.29tn ($45.78bn) at December 2024, a win fueled by fresh external borrowings and the impact of naira depreciation, which lifted the value of naira-denominated dollar-denominated loans.
Domestic debt also experienced a sharp increase of 25.77 per cent, from N59.12tn ($65.73bn) to N74.38tn ($48.44bn) over the same timeframe. The Federal Government domestic debt increased from N53.26tn to N70.41tn, an increase of 32.19 per cent, showing an increased reliance on domestic borrowing to cover budget deficits and infrastructural development.
Domestic debt of the states and the Federal Capital Territory, however, decreased from N5.86tn to N3.97tn, which was a 32.27 per cent reduction. The DMO further stated that the reduction “points to a more cautious attitude by some subnational governments towards debt build-up within the year.”
Monthly, the public debt increased by N2.35tn between September and December 2024. External debt increased by N1.4tn, from N68.89tn ($43.03bn) to N70.29tn ($45.78bn), while domestic debt increased slightly by 1.29 per cent from N73.43tn ($45.87bn) to N74.38tn ($48.44bn).
The Federal Government’s domestic debt rose from N69.22tn to N70.41tn in the third quarter, while the states’ and FCT’s debt fell from N4.21tn to N3.97tn, representing a decline of 5.69 per cent.
As of 2024 year-end, Nigeria’s total public debt had external debt constituting 48.59 per cent, while domestic debt made up 51.41 per cent. This was a relatively balanced structure, despite analysts’ concern with rising foreign debt to fund gaps. External debt composition shows that the Federal Government borrowed N62.92tn ($40.98bn) while the states and the FCT borrowed N7.37tn ($4.80bn). The domestic debt shows that the Federal Government owed a total of N70.41tn ($45.86bn) while the states and the FCT owed N3.97tn ($2.58bn).
The DMO’s reports have raised fresh concerns among economists about Nigeria’s finances. The sharp increase in external debt, for example, is a reflection of increased exposure to exchange rate risk and international economic shifts. With the naira continuing to depreciate, the cost of funding Nigeria’s foreign debt may further put a strain on public finances.
