Nigeria’s total public debt rose to N144.67tn ($94.23bn) as of December 31, 2024, marking a 48.58 per cent increase from the N97.34tn ($108.23bn) recorded at the end of December 2023. The Debt Management Office disclosed this in its latest report on the nation’s debt profile released on Friday, April 4.
The report also highlighted a quarter-on-quarter rise of 1.65 per cent from N142.32tn ($88.89bn) as of September 2024, underscoring a consistent increase in debt levels during the last quarter of the year.
According to the DMO, “The surge in public debt was primarily driven by significant increases in both external and domestic borrowings.” Nigeria’s external debt rose by 83.89 per cent, from N38.22tn ($42.50bn) in December 2023 to N70.29tn ($45.78bn) in December 2024, a rise attributed to fresh external borrowings and the impact of the naira’s depreciation, which inflated the naira value of dollar-denominated loans.
Domestic debt also saw a significant rise of 25.77 per cent, increasing from N59.12tn ($65.73bn) to N74.38tn ($48.44bn) within the same period. The Federal Government’s domestic debt rose from N53.26tn to N70.41tn, a 32.19 per cent jump, indicating a growing dependence on local borrowing to fund budget deficits and infrastructural development.
However, domestic debt held by states and the Federal Capital Territory dropped from N5.86tn to N3.97tn, reflecting a 32.27 per cent decline. The DMO noted that this reduction “points to a more cautious approach by some subnational governments towards debt accumulation during the year.”
On a quarterly basis, the public debt rose 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 grew 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 during the last quarter, whereas debt attributed to the states and the FCT declined from N4.21tn to N3.97tn, a 5.69 per cent drop.
As of the end of 2024, external debt constituted 48.59 per cent of Nigeria’s total public debt, while domestic debt made up 51.41 per cent. This reflects a relatively balanced structure, though analysts have raised concerns over the growing reliance on foreign debt to bridge funding gaps.
The breakdown of external debt shows the Federal Government accounted for N62.92tn ($40.98bn), while states and the FCT held N7.37tn ($4.80bn). For domestic debt, the Federal Government owed N70.41tn ($45.86bn), with the states and the FCT accounting for N3.97tn ($2.58bn).
The DMO’s findings have raised fresh concerns among economists about Nigeria’s fiscal health. The sharp increase in external debt, in particular, points to increased vulnerability to exchange rate volatility and global economic shifts. With the naira continuing to depreciate, the cost of servicing Nigeria’s foreign debt could rise further, putting additional strain on public finances.