Nigeria’s public debt reached a staggering ₦142.3 trillion by the end of September 2024, representing a 5.97% increase from the ₦134.3 trillion reported in June, according to the latest figures from the Debt Management Office (DMO).
This means that every one of Nigeria’s 238 million citizens effectively shoulders a debt burden of ₦711,500.
The rise in debt is largely driven by increased domestic borrowing and the sharp depreciation of the naira, which significantly inflated the naira equivalent of external debts.
In dollar terms, external debt recorded a marginal growth of 0.29%, inching up from $43.03 billion in June to $43.15 billion in September. However, when converted to naira, the external debt grew by a dramatic 9.22%, jumping from ₦63.07 trillion to ₦68.89 trillion due to the weakening exchange rate, which dropped from ₦1,470.19/$ to ₦1,601.03/$.
Domestic debt presented a mixed outlook. While it declined by 5.34% in dollar terms (from $48.45 billion to $45.87 billion), it rose by 3.10% in naira terms, increasing from ₦71.22 trillion to ₦73.43 trillion. The Federal Government remains the key driver of this growth, with domestic debt rising from ₦66.96 trillion in June to ₦69.22 trillion in September.
In contrast, debt owed by states and the Federal Capital Territory (FCT) slightly decreased, dipping from ₦4.27 trillion to ₦4.21 trillion.
Financial experts have raised concerns over the pressures exerted by the naira’s depreciation, warning that the rising debt stock underscores the urgent need for fiscal reforms. Stabilizing the economy and ensuring debt sustainability are critical priorities to prevent further strain on public finances.
