Nigeria’s total public debt increased to N144.67 trillion ($94.23 billion) as of December 31, 2024, marking a significant 48.58% rise from the N97.34 trillion ($108.23 billion) recorded at the end of December 2023. This was revealed in the latest report on the nation’s debt profile, released by the Debt Management Office (DMO) on Friday, April 4.
The report also noted a quarter-on-quarter increase of 1.65%, from N142.32 trillion ($88.89 billion) in September 2024, highlighting a consistent upward trend in debt during the final quarter of the year.
According to the DMO, the surge in public debt was largely driven by substantial increases in both external and domestic borrowings. Nigeria’s external debt saw an 83.89% rise, climbing from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) in December 2024. This increase is attributed to new external borrowings as well as the depreciation of the naira, which inflated the naira value of dollar-denominated loans.
Domestic debt also experienced a notable rise of 25.77%, growing from N59.12 trillion ($65.73 billion) to N74.38 trillion ($48.44 billion) during the same period. The Federal Government’s domestic debt rose from N53.26 trillion to N70.41 trillion, reflecting a 32.19% increase, suggesting a growing reliance on local borrowing to cover budget deficits and fund infrastructure projects.
On the other hand, domestic debt held by states and the Federal Capital Territory (FCT) declined from N5.86 trillion to N3.97 trillion, a 32.27% decrease, indicating a more cautious approach by some subnational governments toward accumulating debt.
Quarterly data shows that public debt rose by N2.35 trillion between September and 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 by 1.29%, from N73.43 trillion ($45.87 billion) to N74.38 trillion ($48.44 billion).
In the final quarter, the Federal Government’s domestic debt rose from N69.22 trillion to N70.41 trillion, while state and FCT debt dropped by 5.69%, from N4.21 trillion to N3.97 trillion.
As of December 2024, external debt accounted for 48.59% of Nigeria’s total public debt, with domestic debt making up the remaining 51.41%. This relatively balanced structure has sparked concerns from analysts about Nigeria’s increasing reliance on foreign debt to address funding gaps.
The breakdown of external debt shows that the Federal Government owes N62.92 trillion ($40.98 billion), while states and the FCT hold N7.37 trillion ($4.80 billion). For domestic debt, the Federal Government owes N70.41 trillion ($45.86 billion), with states and the FCT responsible for N3.97 trillion ($2.58 billion).
The DMO’s findings have raised alarm among economists about Nigeria’s fiscal health. The sharp rise in external debt, in particular, has increased concerns about the country’s vulnerability to exchange rate fluctuations and global economic changes. With the naira continuing to depreciate, the cost of servicing Nigeria’s foreign debt is expected to rise, putting additional pressure on public finances.
