Nigeria’s public debt has surged significantly, with the amount owed by each citizen increasing by 63%, according to a review of the data released by the Debt Management Office.
When President Bola Tinubu took office in June 2023, the country’s debt stood at N87.3 trillion. However, by September 2024, this figure had ballooned to N142.3 trillion, representing a substantial growth in the nation’s debt burden.
According to population data from the World Bank, Nigeria’s population as of 2023 stood at 227 million.
With the total public debt standing at N87.3 trillion as of June 2023, it would mean that debt per capita (that is debt owed by each Nigerian), stood at N383,000 as of June 2023.
With the current total public debt standing at N142.3 trillion, it means that the debt per capita surged to N624,527 per Nigerian as of September 2024.
This amount is nine times the country’s minimum wage of N70,000.
Nigeria’s debt crisis is deepening, with the country’s total debt stock surging to N142 trillion as of September 2024. This represents a 5.97% increase from the previous quarter, driven largely by the depreciation of the naira, which has increased the cost of external debt obligations.
Breaking down the debt, Nigeria’s external debt stands at N68.8 trillion, while domestic debt has reached N73.4 trillion.
Notably, the federal government alone owes N69.2 trillion domestically, with states and the Federal Capital Territory owing an additional N4.2 trillion.
This growing reliance on loans has raised concerns about the country’s debt sustainability, particularly given the weak revenue profile and exchange rate volatility.
Experts warn that Nigeria’s debt crisis could worsen, triggering a debt crisis that would exacerbate the country’s economic challenges.
SaharaReporters reported on Thursday that the newly published total debt profile is more than the N134.2 trillion which Nigeria owed as of June 2024.
Total external debt of the country as of June 2024 stood at N63 billion, while domestic debt stood at 71.2 trillion.
Of this amount, the federal government’s domestic debt stood at N66.9 billion while states stood at N4.2 billion.
Data reviewed shows that between July and September, the federal government borrowed N2.2 trillion more locally and another N5.8 trillion externally.
The devaluation of naira may have worsened the country’s fate in terms of how much it owes. In June 2024, the exchange rate of the country was N1470.19 to a dollar, but by September 2024, it has moved to N1601.
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