Public debt rises 48% to N144.67trn in 2024 — DMO

By Seun Ibiyemi

Nigeria’s public debt surged by 48.5 per cent year-on-year (YoY) to N144.67 trillion ($94.23 billion) in 2024, up from N97.34 trillion ($108.23 billion) in 2023.

This was disclosed by the Debt Management Office (DMO) in its most recent public debt profile report.

The total debt consists of external debt amounting to N70.29 trillion ($45.78 billion), which is serviced with $4.66 million, and domestic debt of N74.38 trillion ($48.44 billion).

The report revealed that the country’s external debt rose by 83.89 per cent YoY from N38.22 trillion ($42.5 billion) in 2023.

Meanwhile, domestic debt grew by 25.7 per cent YoY from N59.12 trillion ($65.73 billion) in 2023.

Additionally, the report showed that the Federal Government’s domestic debt component rose by 32 per cent YoY, reaching N70.41 trillion from N53.26 trillion in 2023.

In contrast, the domestic debt of states and the Federal Capital Territory fell by 32 per cent YoY to N3.97 trillion in 2024, down from N5.86 trillion in 2023.

The increase in public debt can largely be attributed to fluctuating exchange rates amid changes in global economic conditions.

The sharp rise, particularly in external debt, underscores the nation’s vulnerability to exchange rate fluctuations and shifts in global economic dynamics.

As the naira continues to depreciate, the cost of servicing foreign debt could rise, placing additional strain on the country’s financial resources.