As of the end of the second quarter of 2024, Nigeria’s public debt has surged to an unprecedented N134.3 trillion. This marks a significant increase from the N121.7 trillion recorded just a few months prior in the first quarter.
The primary driver of this rise is the devaluation of the nation’s currency, the naira. A report from the Ministry of Finance indicates that the dollar value of the debt has remained relatively stable; however, due to the naira’s depreciation, the debt appears larger when expressed in local currency.
“In Q2 2024, the debt stock grew in naira terms to N134.3 trillion ($91.3 billion) from N121.7 trillion ($91.5 billion) in Q1 2024, primarily influenced by exchange rate devaluation. The dollar amount of debt was roughly unchanged,” the report stated.
Nigeria’s debt is divided between domestic and external loans, with approximately 53% owed to local creditors, amounting to N71.2 trillion. The remaining 47%, or N63.1 trillion, represents foreign debt owed to other countries and international financial institutions.
Furthermore, the report indicates that the country’s debt-to-GDP ratio has exceeded 50%, reflecting the growing burden of debt relative to the economy.
