Nigeria’s total public debt rises to N144.7trn in 2024, says DMO

The Debt Management Office (DMO) has disclosed that Nigeria’s total public debt rose to N144.7 trillion ($94.23 billion) as of December 31, 2024, reflecting a significant increase of 48.58per cent compared to N97.34 trillion ($108.23 billion) recorded at the end of December 2023.

The latest figure by DMO also indicated a quarter-on-quarter rise of 1.65per cent from the N142.32 trillion ($88.89 billion) recorded at the end of September 2024, highlighting the continued increase in the nation’s debt burden within the final quarter of the year.

An analysis of Nigeria’s public debt on a year-on-year basis reveals a notable increase of N47.32 trillion, representing a 48.58per cent rise from December 2023 to December 2024.

The surge in public debt was driven primarily by significant increases in both external and domestic borrowings.

Nigeria’s external debt rose substantially by 83.89per cent from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) in December 2024.

This sharp increase was largely attributed to new external borrowings obtained during the year, as well as the impact of the naira depreciation, which inflated the naira equivalent of dollar-denominated debt.

Domestic debt also witnessed considerable growth, increasing by 25.77per cent from N59.12 trillion ($65.73 billion) at the end of December 2023 to N74.38 trillion ($48.44 billion) in December 2024.

The Federal Government’s domestic debt component rose significantly from N53.26 trillion to N70.41 trillion, a growth of 32.19%. This increase reflects the government’s continued reliance on local borrowing to finance budget deficits and infrastructure projects.

Conversely, the domestic debt owed by states and the Federal Capital Territory (FCT) saw a reduction from N5.86 trillion to N3.97 trillion, representing a decline of 32.27per cent.

The reduction in state-level borrowing indicates a cautious approach by some subnational governments towards debt accumulation within the year.

Compared to the preceding quarter, Nigeria’s total public debt rose by N2.35 trillion, translating to a 1.65 per cent increase from N142.32 trillion reported as of September 30, 2024.

The marginal rise within the quarter was driven by increases in both external and domestic debt components.

External debt grew by N1.4 trillion, moving from N68.89 trillion ($43.03 billion) as of the end of September 2024 to N70.29 trillion ($45.78 billion) in December 2024.

The increase within the quarter was influenced by additional foreign loans obtained in the last three months of the year, alongside the further weakening of the naira against major international currencies.

On the domestic front, debt rose slightly by 1.29%, from N73.43 trillion ($45.87 billion) in September 2024 to N74.38 trillion ($48.44 billion) by the end of December. The Federal Government’s domestic debt increased from N69.22 trillion to N70.41 trillion within the quarter.

However, domestic debt attributed to states and the FCT reduced from N4.21 trillion to N3.97 trillion, reflecting a 5.69% decrease.

As of December 2024, external debt constituted 48.59% of Nigeria’s total public debt, while domestic debt made up 51.41%, indicating a relatively balanced debt structure.

However, the continued increase in external borrowings suggests a growing reliance on foreign debt to bridge budgetary shortfalls.

The breakdown of external debt shows that the Federal Government accounted for N62.92 trillion ($40.98 billion), while states and the FCT held N7.37 trillion ($4.80 billion).

In the domestic debt segment, the Federal Government held N70.41 trillion ($45.86 billion), with states and the FCT accounting for N3.97 trillion ($2.58 billion).