Nigeria’s total public debt has reached a staggering N142.3 trillion as of September 30, 2024. This marks a 5.97% increase (N8.02 trillion) from the N134.3 trillion recorded in June 2024, PulseNets learned.
The rise has been attributed to escalating domestic borrowing and the depreciation of the naira, which significantly impacted external debt when converted into local currency terms.
Data obtained by PulseNets from the Debt Management Office (DMO) reveals that Nigeria’s external debt, measured in dollar terms, experienced a marginal growth of 0.29%, climbing from $43.03 billion in June to $43.15 billion in September. However, the naira equivalent of external debt surged by 9.22%, increasing from N63.07 trillion to N68.89 trillion during the same period. This substantial rise is largely tied to the naira’s depreciation against the US dollar, as the exchange rate weakened from N1,470.19/$ in June to N1,601.03/$ by the end of September.
Domestic debt trends showed mixed signals, PulseNets learnt. While domestic debt in dollar terms declined by 5.34%, dropping from $48.45 billion in June to $45.87 billion in September, the naira equivalent rose by 3.10%, increasing from N71.22 trillion to N73.43 trillion.
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A deeper analysis revealed that the Federal Government accounted for the majority of domestic debt. Its debt burden rose from N66.96 trillion in June to N69.22 trillion by September, sources told PulseNets. In contrast, domestic debt owed by states and the Federal Capital Territory (FCT) slightly decreased, from N4.27 trillion to N4.21 trillion.
PulseNets reported that this dual impact of borrowing and currency depreciation underscores the complexities of Nigeria’s fiscal challenges, calling for strategic interventions to manage the growing debt sustainably.
