Nigeria’s Public Debt Increases by N24.33 Trillion in Three Months, Hits N121.67 Trillion

The Debt Management Office (DMO) has revealed a significant increase in Nigeria’s public debt, reaching a total of N121.67 trillion (approximately $91.46 billion) as of March 31, 2024. This marks a substantial rise of N24.33 trillion in just three months, compared to the previous figure of N97.34 trillion in December 2023.

The DMO’s statement highlighted that Nigeria’s public debt encompasses both domestic and external debts of the federal government, state governments, and the Federal Capital Territory. The increase in debt was attributed to naira devaluation, which resulted in a reduction of the total debt in dollar terms.

Of the total debt, the domestic debt accounted for a significant portion, totaling N65.65 trillion (USD 46.29 billion), while the external debt amounted to N56.02 trillion (USD 42.12 billion). This means that 53.96% of the nation’s total debt is owed to domestic creditors.

Furthermore, the DMO disclosed that the increase in domestic debt was primarily due to new borrowing by the federal government to 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.

Despite the naira exchange rate movements in the first quarter of 2024, the DMO emphasized that the growth in domestic debt was driven by the government’s efforts to address budget shortfalls and manage existing liabilities.

The DMO’s latest report underscores the challenges facing Nigeria’s fiscal management and the need for sustainable debt management strategies to ensure the country’s economic stability and growth in the long term.