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Nigeria’s total public debt has surged to a staggering ₦121.67 trillion as of March 31, 2024, marking a significant rise of ₦24.33 trillion or 24.99 percent in just three months, according to the latest figures released by the Debt Management Office (DMO).
This sharp increase from the December 2023 figure of ₦97.34 trillion has raised concerns over the country’s fiscal sustainability.
The DMO’s report, issued in a press release on Thursday in Abuja, detailed that the total public debt comprises the combined domestic and external debts of the Federal Government, all thirty-six state governments, and the Federal Capital Territory.
The breakdown provided shows that the total domestic debt stood at N65.65 trillion, while the external debt amounted to N56.02 trillion.
The rise in the total debt figure, notably higher in naira terms, has been attributed primarily to the devaluation of the naira.
Despite the nominal increase in debt, when converted to US dollars, the total debt actually shows a reduction, from USD108.23 billion in December 2023 to USD91.46 billion by the end of March 2024.
The escalation in public debt comes amid the government’s continued borrowing from international financial institutions. Over the past 12 months, Nigeria has secured loans totaling $4.95 billion from the World Bank, highlighting the government’s reliance on external funding.
Additionally, there are pending loan approvals expected to be worth $4.4 billion from the World Bank and the African Development Bank in the coming year.
The increasing debt levels are occurring alongside growing apprehensions about the costs associated with servicing this external debt. With the naira’s depreciation, the burden of debt repayment in local currency terms could further strain the nation’s financial resources.