Nigeria’s public debt surged by 48.5 per cent year-on-year (YoY) to N144.67 trillion ($94.23 billion) in 2024, up from N97.34 trillion ($108.23 billion) in 2023.
This stark increase was revealed in the latest public debt profile report by the Debt Management Office (DMO). The total debt comprises an external debt of N70.29 trillion ($45.78 billion), serviced with $4.66 million, and a domestic debt of N74.38 trillion ($48.44 billion).
The report indicated that the country’s external debt skyrocketed by 83.89 per cent YoY, rising from N38.22 trillion ($42.5 billion) in 2023.
Similarly, domestic debt grew by 25.7 per cent YoY, increasing from N59.12 trillion ($65.73 billion) in 2023. Notably, the Federal Government’s component of domestic debt rose by 32 per cent YoY, reaching N70.41 trillion, up from N53.26 trillion in the previous year.
In contrast, the domestic debt of the states and the Federal Capital Territory saw a decline of 32 per cent YoY, falling to N3.97 trillion in 2024 from N5.86 trillion in 2023.
The rise in public debt can be largely attributed to fluctuating exchange rates amid changing global economic conditions.
This sharp increase, especially in external debt, underscores the nation’s susceptibility to exchange rate volatility and shifts in global economic dynamics.
As the naira continues to depreciate, the cost of servicing foreign debt could rise significantly, placing additional strain on the country’s financial resources.
