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Nigeria’s total public debt has skyrocketed to N144.67 trillion ($94.23 billion) as of December 31, 2024, marking a 48.58% increase from N97.34 trillion ($108.23 billion) in December 2023. The Debt Management Office (DMO) revealed this in its latest report, highlighting a continuous rise in the nation’s debt burden.

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The surge in public debt is primarily driven by significant increases in both external and domestic borrowings. Nigeria’s external debt jumped by 83.89% from ₦38.22 trillion ($42.50 billion) in December 2023 to ₦70.29 trillion ($45.78 billion) in December 2024, largely due to new external loans and the naira’s depreciation.

Key Breakdown:

– *External Debt:* N70.29 trillion ($45.78 billion), accounting for 48.59% of total public debt

– *Domestic Debt:*74.38 trillion ($48.44 billion), accounting for 51.41% of total public debt

– *Federal Government’s Domestic Debt:* N70.41 trillion ($45.86 billion), a 32.19% increase from N53.26 trillion

– *States and FCT’s Domestic Debt:* N3.97 trillion ($2.58 billion), a 32.27% decline from N5.86 trillion

The DMO stated, “The surge in public debt was primarily driven by significant increases in both external and domestic borrowings.” This growth raises concerns among economic analysts regarding Nigeria’s fiscal stability, particularly with the naira’s continued depreciation, which could escalate the cost of servicing foreign debt.

Concerns and Implications:

– Increased vulnerability to exchange rate fluctuations and global economic shifts

– Growing reliance on foreign debt to bridge budgetary gaps

– Pressure on the country’s financial resources due to rising debt servicing costs

The report also highlighted a quarter-on-quarter rise of 1.65% from N142.32 trillion ($88.89 billion) in September 2024, with external debt increasing by N1.4 trillion and domestic debt rising by 1.29%.

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