As of December 31, 2024, the total public debt in Nigeria rose to N14467TN (USD 94.23 billion), marking a 48.58% increase in N97.34TN (USD 108.23 billion) recorded at the end of December 2023.
The report also highlighted that as of September 2024, the quarter of the N14232TN ($88.89 billion) increased by 1.65%, which highlighted the continued growth in debt levels in the previous quarter of the year.
According to the DMO, “the surge in public debt is mainly due to a substantial increase in external and domestic borrowing.” Nigeria’s external debt rose by 83.89 per cent, from N38.22tn ($42.50bn) in December 2023 to N70.29tn ($45.78bn) in December 2024, a rise attributed to fresh external borrowings and the impact of the naira’s depreciation, which inflated the naira value of dollar-denominated loans.
The significant increase in domestic debt also increased by 25.77%, from N5912TN ($65.73 billion) to N74.38TN ($48.444 billion) during the same period. The federal government’s domestic debt rose from N53.26TN to N70.41TN, an increase of 32.19%, indicating an increasing reliance on local lending to fund budget deficits and infrastructure development.
However, domestic debts in state and federal capital territories fell from N5.86TN to N3.97TN, reflecting a 32.27% drop. The DMO notes that this reduction “points to a more cautious approach by some subnational governments on debt accumulation over the course of the year.”
Each quarter, public debt increased by N2.35TN between September 2024 and December 2024. Foreign debt increased N1.4TN, from N6889TN ($43.03 billion) to N7029TN ($45.78 billion), while domestic debt increased by 1.29% ($484.44 billion) from N73.43TN (43.43Tn) (45.43tn) (45.87 bn).
The federal government’s domestic debt rose from N69.22TN to N70.41TN last quarter, while debt was attributed to states, with FCT falling from N4.21TN to N3.97TN, down 5.69%.
As of the end of 2024, foreign debt accounted for 48.59% of Nigeria’s total debt, while domestic debt accounted for 51.41%. This reflects a relatively balanced structure, although analysts rely on increasing foreign debt to bridge the funding gap has attracted attention.
The failure of foreign debt shows that the federal government accounts for N6.292TN ($40.98 billion), while the state and FCT hold N7.37TN ($48 billion). For domestic debt, the federal government owes N7041TN ($45.86 billion), with states and FCT accounting for N397TN ($2.58 billion).
The DMO discovery has attracted economists’ attention to the fiscal health of Nigeria. In particular, the sharp increase in foreign debt shows that it increases the vulnerability of exchange rate volatility and global economic transformation. As Naira continues to depreciate, the cost of serving Nigeria’s foreign debt may rise further, which puts additional pressure on public finances.
