Nigeria's Soaring Debt Reaches ₦144.67 Trillion In 2024: Experts Sound Alarm

Nigeria’s total public debt has witnessed a substantial rise, hitting ₦144.67 trillion by the end of December 2024, according to the latest figures released by the Debt Management Office (DMO). This marks a 48.58% increase from the ₦97.34 trillion recorded in December 2023.

On a year-to-year basis, the country’s debt escalated by ₦47.32 trillion, highlighting the growing fiscal challenges the nation faces. A closer quarterly analysis also revealed a 1.65% increase from ₦142.32 trillion reported in September 2024, confirming a persistent upward trend in Nigeria’s borrowing.

External and Domestic Borrowing Fueling the Surge

The surge is primarily attributed to increases in both external and domestic borrowing. External debt skyrocketed by 83.89%, reaching ₦70.29 trillion in December 2024 from ₦38.22 trillion in the same period of the previous year.

Meanwhile, domestic debt saw a 25.77% increase, climbing to ₦74.38 trillion from ₦59.12 trillion recorded at the end of 2023.

A deeper look into the external debt structure shows that the federal government accounted for ₦62.92 trillion (equivalent to $40.98 billion), while state governments and the Federal Capital Territory (FCT) held ₦7.37 trillion ($4.80 billion).

For domestic obligations, the federal government carried ₦70.41 trillion ($45.86 billion), while the states and FCT were responsible for ₦3.97 trillion ($2.58 billion).

Experts Voice Concerns Over Nigeria’s Rising Debt Load

Economic analysts and financial experts have expressed serious concerns about Nigeria’s growing debt profile. Dr. Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise (CPPE), remarked that the government’s increasing dependence on borrowing is worrisome, particularly considering the nation’s ongoing infrastructural challenges.

“The continuous debt accumulation is unsustainable, especially in the face of slow revenue growth and a significant infrastructure deficit,” Dr. Yusuf warned.

According to a World Bank report, Nigeria’s debt vulnerability is intensifying, with borrowing levels pushing the country closer to potential debt distress. Read the full report here.

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