Hobnob News – Abuja:
Nigeria’s public debt has seen a significant spike, rising by 48.5% year-on-year to a staggering N144.67 trillion (equivalent to $94.23 billion) in 2024, up from N97.34 trillion ($108.23 billion) recorded in 2023. This was disclosed in the latest report released by the Debt Management Office (DMO).
The national debt portfolio is split into external debt of N70.29 trillion ($45.78 billion) and domestic debt of N74.38 trillion ($48.44 billion). Servicing the external portion cost the country approximately $4.66 million.
A closer look reveals that external debt surged by 83.89% year-on-year, up from N38.22 trillion ($42.5 billion) in 2023, underscoring growing reliance on foreign borrowing. Meanwhile, domestic debt rose by 25.7% from N59.12 trillion ($65.73 billion) in the previous year.
The Federal Government’s share of domestic debt jumped significantly by 32% YoY to N70.41 trillion, compared to N53.26 trillion in 2023. However, there was a contrasting decline in domestic debt incurred by state governments and the Federal Capital Territory (FCT), which fell by 32% to N3.97 trillion, down from N5.86 trillion in 2023.
Analysts attribute the steep rise in public debt to ongoing volatility in exchange rates and shifting global economic dynamics. The substantial increase in external debt highlights Nigeria’s growing exposure to foreign exchange risks.
With the continued depreciation of the naira, there are rising concerns that the cost of servicing foreign debt will intensify, putting further pressure on the nation’s already stretched fiscal resources.
