Nigeria’s total public debt reached a staggering N144.67 trillion ($94.23 billion) by December 31, 2024, reflecting a 48.58% year-on-year increase from N97.34 trillion ($108.23 billion) reported at the close of 2023.
The latest figures, published by the Debt Management Office (DMO), underline an accelerating debt profile, with a quarter-on-quarter uptick of 1.65% compared to N142.32 trillion ($88.89 billion) in September 2024.
A detailed breakdown reveals that the increase stems from substantial growth in external and domestic borrowings, driven by efforts to finance budget deficits and manage macroeconomic challenges.
External Debt Soars Amid Naira Depreciation
External debt saw a dramatic 83.89% rise, jumping from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) by the end of 2024. The surge is largely attributed to fresh foreign loans and the depreciation of the naira, which inflated the naira value of dollar-denominated debt.
Domestic Borrowing Also Increases
Domestic debt also saw a notable increase, growing 25.77% from N59.12 trillion ($65.73 billion) to N74.38 trillion ($48.44 billion).
The Federal Government was the main driver of this growth, with its domestic debt stock expanding from N53.26 trillion to N70.41 trillion, marking a 32.19% increase. This signals a continued dependence on the local debt market for funding public projects and recurrent expenses.
Subnational Debt Trends Downward
In contrast, debt obligations by state governments and the Federal Capital Territory (FCT) declined significantly. The total dropped from N5.86 trillion to N3.97 trillion, indicating a 32.27% reduction, possibly due to more cautious borrowing strategies at the subnational level.
Quarter-on-Quarter Changes
Between Q3 and Q4 of 2024, Nigeria’s total public debt rose by N2.35 trillion, driven primarily by new foreign loans and the naira’s continued decline.
Domestic debt increased modestly by 1.29%, from N73.43 trillion ($45.87 billion) to N74.38 trillion ($48.44 billion) within the quarter.
The Federal Government’s local debt rose from N69.22 trillion to N70.41 trillion, while state and FCT domestic debt saw a decline from N4.21 trillion to N3.97 trillion—a 5.69% drop.
