Nigeria’s public debt has climbed to an all-time high of ₦142.3 trillion by the end of September 2024, according to the Debt Management Office (DMO). This represents a 5.97% increase from the ₦134.3 trillion recorded in June. The alarming surge is attributed to increased domestic borrowing and the sharp depreciation of the naira, which has inflated the naira equivalent of external debts.
External debt, measured in dollar terms, rose marginally by 0.29%, from $43.03 billion in June to $43.15 billion in September. However, the naira equivalent of external debt soared by 9.22%, rising from ₦63.07 trillion to ₦68.89 trillion. This significant jump reflects the weakening of the naira, which depreciated from ₦1,470.19 per dollar to ₦1,601.03 per dollar during the same period.
Meanwhile, domestic debt presented a mixed picture. While it declined by 5.34% in dollar terms, dropping from $48.45 billion to $45.87 billion, it increased by 3.10% in naira terms, rising from ₦71.22 trillion to ₦73.43 trillion.
“The Federal Government remains the primary driver of domestic debt, which grew from ₦66.96 trillion in June to ₦69.22 trillion in September,” the DMO said in its report. Debt owed by states and the Federal Capital Territory (FCT) saw a slight decrease, falling from ₦4.27 trillion to ₦4.21 trillion.
The DMO’s data shows that every Nigerian effectively owes ₦711,500, a figure calculated by dividing the total debt by the country’s estimated population of 200 million people. The debt burden raises concerns about the long-term sustainability of Nigeria’s fiscal policies and the economic impact on its citizens.
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The rapid rise in public debt has prompted financial experts to call for immediate fiscal reforms to stabilize the economy. Many warn that the combination of rising domestic borrowing and a depreciating currency could push the country into deeper financial trouble if not addressed promptly.
“The continuous depreciation of the naira is a critical factor exacerbating Nigeria’s debt situation,” a financial analyst explained. “This underscores the urgent need for the government to implement reforms that address revenue generation, control borrowing, and manage foreign exchange more effectively.”
The Federal Government has yet to announce specific measures to tackle the rising debt, but the DMO emphasized the importance of fiscal discipline and economic diversification to reduce reliance on external borrowing. As the debt figures continue to rise, Nigerians face an uncertain economic future, with calls for government action growing louder.