Public Debt Increases by 48.58% to N144.67trn
Nigeria’s total public debt rose to N144.67 trillion (approximately $94.23 billion) as of December 31, 2024, representing a 48.58 per cent increase compared to N97.34 trillion (or $108.23 billion) recorded at the end of December 2023.
This is even as it is projected that the country’s debt may hit over N157 trillion by December 2025. This is because of the planned borrowing of N13 trillion to finance the 2025 budget deficit.
The Debt Management Office (DMO) which disclosed this in its latest report on the country’s public debt profile, also revealed a quarter-on-quarter rise of 1.65 per cent from the N142.32 trillion ($88.89 billion) recorded at the end of September 2024, highlighting the continuous increase in the nation’s debt burden during the final quarter of the year.
The surge in public debt was primarily driven by significant increases in both external and domestic borrowings.
Nigeria’s external debt increased by 83.89 per cent from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) in December 2024.
The sharp rise according to the report was due to new external borrowings and the impact of naira depreciation, which raised the naira equivalent of dollar-denominated debt.
The DMO said domestic debt also rose by 25.77 per 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 grew significantly from N53.26 trillion to N70.41 trillion, reflecting a 32.19 per cent increase.
This growth indicates the government’s continued reliance on local borrowing through the bond market to finance budget deficits and infrastructure projects.
In contrast, the domestic debt owed by states and the Federal Capital Territory dropped from N5.86 trillion to N3.97 trillion, representing a decline of 32.27 per cent.
This reduction points to a more cautious approach by some subnational governments towards debt accumulation during the year.
According to the DMO, on quarter-on-quarter basis, external debt rose by N1.4 trillion, moving from N68.89 trillion ($43.03 billion) as of September 2024 to N70.29 trillion ($45.78 billion) in December.
DMO explained that this was influenced by new foreign loans acquired in the last three months of the year, alongside the further weakening of the naira.
On the domestic front, debt rose slightly by 1.29 per cent 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 decreased from N4.21 trillion to N3.97 trillion, reflecting a 5.69 per cent drop.
As of December 2024, external debt made up 48.59 per cent of Nigeria’s total public debt, while domestic debt accounted for 51.41 per cent, indicating a relatively balanced debt structure.
However, the rise in external borrowings points to the growing reliance on foreign debt to bridge budgetary gaps.
A 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).
