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| Image Source: Debt Management Office Nigeria emblem. |
Nigeria’s public debt has surged to an unprecedented N144.67 trillion as of December 2024, reflecting a sharp increase of N47.32 trillion from the N97.34 trillion recorded at the end of 2023. The Debt Management Office (DMO) disclosed this alarming development in its latest report, underscoring the country’s growing fiscal challenges.
The debt profile grew by 48.58% year-on-year and showed a quarter-on-quarter increase of 1.65%, rising from N142.32 trillion in September 2024. This upward trajectory highlights Nigeria’s reliance on borrowing to finance its budgetary deficits and developmental projects.
Breakdown of the Debt:
- External Debt: External borrowing surged by 83.89%, reaching N70.29 trillion in December 2024, compared to N38.22 trillion in December 2023.
- Domestic Debt: Domestic borrowing increased by 25.77%, amounting to N74.38 trillion at the end of December 2024, up from N59.12 trillion a year earlier.
Federal and State Contributions:
The Federal Government accounts for the majority of the debt:
- External Debt: N62.92 trillion ($40.98 billion).
- Domestic Debt: N70.41 trillion ($45.86 billion).
Meanwhile, states and the Federal Capital Territory (FCT) contribute:
- External Debt: N7.37 trillion ($4.80 billion).
- Domestic Debt: N3.97 trillion ($2.58 billion).
Expert Concerns:
Economic experts have raised concerns about Nigeria’s spiraling debt levels amidst significant infrastructural deficits and limited revenue generation capacity. Dr. Muda Yusuf, CEO of the Centre for Promotion of Private Enterprises, criticized the trend, emphasizing its potential impact on economic stability.
The rising debt figures underline Nigeria's urgent need for fiscal reforms and improved revenue strategies to curb excessive borrowing and ensure sustainable economic growth.