Nigeria’s public debt has surged to ₦121.67 trillion ($91.46 billion) as of March 31, 2024, marking an increase of ₦24.33 trillion within just three months.
This data was released by the Debt Management Office (DMO) on Thursday, June 20, 2024.
The total debt includes both domestic and external borrowings by the Federal Government, the 36 state governments, and the Federal Capital Territory (FCT).
Specifically, domestic debt amounts to ₦65.65 trillion ($46.29 billion), while external debt stands at ₦56.02 trillion ($42.12 billion).
The rise in debt is attributed to new borrowing undertaken to partially fund the 2024 budget deficit and the securitisation of a portion of the ₦7.3 trillion Ways and Means advances at the Central Bank of Nigeria.
President Bola Tinubu has expressed concerns about the sustainability of servicing such a high debt burden, stressing the need for significant improvements in government revenue to ensure long-term fiscal stability.
He recently signaled the intention to present a supplementary budget to the National Assembly to address emerging fiscal challenges.
Despite the increase in nominal debt figures, there was a notable decrease of $16.77 billion in dollar terms, primarily due to Naira depreciation during the first quarter of 2024.
This adjustment was made using an official exchange rate of ₦1,330/$ for external debts, compared to ₦899.39/$ used in December 2023.
President Tinubu, who signed the ₦28.7 trillion 2024 Appropriation Bill into law on January 1, 2024, emphasised the need for decisive actions to reduce over-reliance on borrowing and enhance economic resilience for future generations.
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