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| Credit: Sahara Reporter |
Despite repeated promises to reduce the country's reliance on loans, Nigeria's debt portfolio has increased by N55.2 trillion within the first 19 months of the Bola Tinubu administration.
According to data from the Debt Management Office, the Federal Government's external debt rose from N29.8 trillion in June 2023 to N62.917 trillion by December 2024, marking an increase of N33.1 trillion. Domestic debt also saw a significant rise, climbing from N48.3 trillion to N70.4 trillion over the same period, a growth of N22.1 trillion.
In total, the Federal Government's debt (excluding debts owed by states and the FCT) increased by N55.2 trillion by the end of December 2024.
Despite President Tinubu's vow in August 2023 to break the cycle of over-reliance on borrowing for public spending, the administration appears to be expanding the country’s debt portfolio relentlessly.
In the fourth quarter of 2024 alone, the Tinubu-led government spent N2.199 trillion on debt servicing, exceeding both the budgeted N2.067 trillion and the N2.055 trillion spent in the previous quarter. This figure also surpasses the N1.876 trillion spent on debt servicing during the same period in 2023.
Nigeria’s total public debt stock stood at 51.29% of its Gross Domestic Product (GDP) as of the end of September 2024, which is below the 70% threshold for market-access countries. The rise was largely due to revaluation effects from exchange rate depreciation and new borrowings to finance the deficit outlined in the 2024 Appropriation Act.
