Abuja, Nigeria — The Debt Management Office (DMO) has raised the alarm over Nigeria’s ballooning public debt, which surged to ₦144.67 trillion ($94.23 billion) as of December 31, 2024, marking a 48.58% increase within one year.
In its latest report released on Friday, the DMO disclosed that the sharp rise from ₦97.34 trillion in 2023 is attributed to increased borrowings and the weakening naira. The fourth quarter alone recorded a 1.65% uptick from ₦142.32 trillion in September 2024.
The report revealed significant growth in both external and domestic borrowings. External debt escalated by 83.89%, rising from ₦38.22 trillion ($42.50bn) in December 2023 to ₦70.29 trillion ($45.78bn) by year-end 2024. The naira depreciation amplified the impact of these dollar-denominated loans.
Meanwhile, domestic debt grew by 25.77%, climbing from ₦59.12 trillion to ₦74.38 trillion. The Federal Government’s portion of domestic debt rose by 32.19%, from ₦53.26 trillion to ₦70.41 trillion. However, subnational borrowings, which is attributed to states and the Federal Capital Territory, declined by 32.27%, reflecting more cautious fiscal approaches at that level.
On a quarter-by-quarter basis, Nigeria’s total debt rose by ₦2.35 trillion. External debt increased by ₦1.4 trillion due to fresh foreign loans and currency devaluation. Domestic debt climbed by 1.29%, with federal obligations again leading the rise.
As of December 2024, domestic and external debts contributed 51.41% and 48.59%, respectively, to the total debt stock. Analysts say the relatively balanced structure is overshadowed by the country’s increasing exposure to global economic pressures and exchange rate volatility.
Economic experts have expressed concern about Nigeria’s growing reliance on foreign loans, warning that continued naira devaluation may intensify the burden of debt servicing.
The DMO reaffirmed its commitment to transparency in public debt management while urging all tiers of government to adopt prudent borrowing strategies to safeguard national economic stability.
By Taiwo Olatinwo | April 5, 2025
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