Nigeria’s total public debt has soared to N144.67 trillion as of December 31, 2024, marking a 48.58 percent increase from the N97.34 trillion reported at the end of 2023, according to the latest data released by the Debt Management Office.
The report, made public on Friday, reveals that the country’s debt grew by N47.32 trillion over a one-year period, driven largely by increases in both external and domestic borrowing. On a quarterly basis, the debt stock rose by 1.65 percent from N142.32 trillion in September 2024.
A key contributor to the rising debt burden was external borrowing, which surged by 83.89 percent—from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) at the end of 2024.
The DMO attributed this spike to new loans and the weakening of the naira, which inflated the local currency value of Nigeria’s dollar-denominated obligations.
Domestic debt also saw a significant rise, increasing by 25.77 percent from N59.12 trillion to N74.38 trillion within the same period.
The Federal Government’s share of domestic debt rose sharply by 32.19 percent, from N53.26 trillion to N70.41 trillion, reflecting increased reliance on local borrowing to fund fiscal shortfalls and infrastructure projects.
Conversely, domestic debt attributed to state governments and the Federal Capital Territory decreased by 32.27 percent—from N5.86 trillion to N3.97 trillion—suggesting a more restrained approach to debt by subnational entities in 2024.
Quarterly figures show a similar trend: external debt rose by N1.4 trillion between September and December 2024, while domestic debt increased by 1.29 percent in the same period.
As of the end of 2024, Nigeria’s debt composition was nearly balanced, with external debt accounting for 48.59 percent and domestic debt making up 51.41 percent of the total.
A breakdown of the figures shows the Federal Government holds the majority share in both categories—N62.92 trillion in external debt and N70.41 trillion in domestic debt. In comparison, states and the FCT are responsible for N7.37 trillion in external debt and N3.97 trillion domestically.
The rising debt profile has sparked concern among economic analysts, who warn that the increasing reliance on external financing makes Nigeria more vulnerable to global economic shocks and currency fluctuations.
