Nigeria’s public debt has grown significantly, with each citizen’s share of the debt rising by 63%, according to data from the Debt Management Office.
When President Bola Tinubu assumed office in June 2023, the national debt stood at N87.3 trillion. By September 2024, this figure had escalated to N142.3 trillion, marking a substantial increase in the nation’s financial obligations.
Population data from the World Bank estimates Nigeria’s population at 227 million in 2023. Based on this figure, the debt per capita (the amount owed by each Nigerian) was N383,000 in June 2023. By September 2024, this number had risen sharply to N624,527 per individual. This debt burden is now nine times the country’s minimum wage of N70,000.
The debt crisis has deepened, with Nigeria’s total debt stock rising to N142 trillion as of September 2024, reflecting a 5.97% increase from the previous quarter. This surge is largely attributed to the naira’s depreciation, which has increased the cost of external debt repayments.
A breakdown of the debt reveals that external debt stands at N68.8 trillion, while domestic debt has climbed to N73.4 trillion. Of the domestic debt, the federal government owes N69.2 trillion, while states and the Federal Capital Territory owe N4.2 trillion collectively.
This growing dependence on borrowing has raised concerns about the sustainability of Nigeria’s debt, especially given its weak revenue base and fluctuating exchange rates. Experts have warned that the debt crisis could further escalate, worsening the country’s economic challenges.
Data shows that as of June 2024, Nigeria’s external debt was N63 trillion, while domestic debt stood at N71.2 trillion. Of the domestic debt, the federal government owed N66.9 trillion, with states accounting for N4.2 trillion.
Between July and September 2024, the federal government borrowed an additional N2.2 trillion domestically and N5.8 trillion externally. The devaluation of the naira has worsened the country’s debt situation. In June 2024, the exchange rate stood at N1,470.19 to the dollar but increased to N1,601 by September 2024.
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