Nigeria’s Debt Management Office (DMO) reported a significant rise in the country’s total public debt, which reached N121.67 trillion (approximately $91.46 billion) as of March 31, 2024. This figure includes the combined domestic and external debts of the Federal Government of Nigeria (FGN), the thirty-six state governments, and the Federal Capital Territory (FCT).
In comparison, the total public debt at the end of December 2023 stood at N97.34 trillion (approximately $108.23 billion). This indicates an increase of N24.33 trillion or 24.99% within three months.
Key Drivers of the Increase
The primary driver of this debt increase is the devaluation of the naira, which reduced the debt in dollar terms by $16.77 billion or 18.34%. The breakdown of the total debt as of March 31, 2024, shows that domestic debt constituted 53.96% of the total, amounting to N65.65 trillion (approximately $46.29 billion), while external debt was N56.02 trillion (approximately $42.12 billion).
Details on Domestic Debt
Excluding the impact of naira exchange rate movements in the first quarter of 2024, domestic debt significantly rose from N59.12 trillion at the end of December 2023 to N65.65 trillion by March 31, 2024. This N6.53 trillion or 11.05% increase is attributed to new borrowing undertaken to help finance the 2024 budget deficit and the securitization of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria (CBN).
Statement from the DMO
The DMO’s statement highlighted the following: “Nigeria’s Total Public Debt, comprising the Total Domestic and External Debts of the Federal Government of Nigeria (FGN), the thirty-six (36) state governments, and the Federal Capital Territory (FCT), stood at N121.67 trillion (USD91.46 billion) as at March 31, 2024. The December 31, 2023 comparative figure was N97.34 trillion (USD108.23 billion). Total Domestic Debt was N65.65 trillion (USD46.29 billion), while Total External Debt was N56.02 trillion (USD42.12 billion).
“Excluding Naira exchange rate movements in Q1 2024, only the Domestic Debt component of Total Public Debt grew from N59.12 trillion on December 31, 2023, to N65.65 trillion on March 31, 2024. The increase was from new borrowing to part-finance the 2024 Budget deficit and securitization of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria.”
Additional Insights
DMO’s Director General, Patience Oniha, mentioned that the federal government raised N4.5 trillion out of the N6 trillion target in the 2024 budget. She also noted that domestic securities remain a major source of federal government spending.
