Nigeria’s public debt surged by 48.58%, reaching N144.67 trillion ($94.23 billion) as of December 31, 2024, up from N97.34 trillion ($108.23 billion) at the close of 2023.
This increase was disclosed in the latest report by the Debt Management Office on the country’s public debt profile.
The report also showed a 1.65% quarter-on-quarter increase, from N142.32 trillion ($88.89 billion) at the end of September 2024, emphasizing the ongoing rise in Nigeria’s debt burden during the final quarter of the year.
An analysis of Nigeria’s public debt year-on-year shows a significant increase of N47.32 trillion, reflecting a 48.58% rise from December 2023 to December 2024.
This surge was mainly driven by substantial increases in both external and domestic borrowings.
Nigeria’s external debt saw a significant rise of 83.89%, growing from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) in December 2024.
This sharp increase was mainly driven by new external borrowings and the depreciation of the naira, which raised the naira equivalent of dollar-denominated debt.
Domestic debt also saw significant growth, rising by 25.77% from N59.12 trillion ($65.73 billion) in December 2023 to N74.38 trillion ($48.44 billion) in December 2024.
The Federal Government’s domestic debt component grew by 32.19%, from N53.26 trillion to N70.41 trillion. This increase highlights the government’s continued reliance on local borrowing to finance budget deficits and infrastructure projects.
In contrast, the domestic debt owed by states and the Federal Capital Territory decreased from N5.86 trillion to N3.97 trillion, a decline of 32.27%.
This reduction reflects a more cautious approach by some subnational governments toward debt accumulation during the year.
Compared to the preceding quarter, Nigeria’s total public debt rose by N2.35 trillion, translating to a 1.65% increase from N142.32 trillion reported as of September 30, 2024.
The marginal rise within the quarter was driven by increases in both external and domestic debt components.
External debt grew by N1.4 trillion, moving from N68.89 trillion ($43.03 billion) as of the end of September 2024 to N70.29 trillion ($45.78 billion) in December 2024.
The quarterly increase was driven by additional foreign loans secured in the last three months of the year, along with the further depreciation of the naira against major international currencies. On the domestic side, debt rose by 1.29%, from N73.43 trillion ($45.87 billion) in September 2024 to N74.38 trillion ($48.44 billion) by December’s end.
The Federal Government’s domestic debt grew from N69.22 trillion to N70.41 trillion during the quarter.
The marginal rise within the quarter was driven by increases in both external and domestic debt components.
External debt grew by N1.4 trillion, moving from N68.89 trillion ($43.03 billion) as of the end of September 2024 to N70.29 trillion ($45.78 billion) in December 2024.
