Nigeria’s debt increased to N144.67tn in 2024

Nigeria’s debt increased to N144.67tn in 2024

Nigeria’s general public debt rose to N144.67tn ($94.23bn) as of December 31, 2024, marking a 48. fifty eight in line with cent boom from the N97.34tn ($108.23bn) recorded on the stop of December 2023. The Debt Management Office disclosed this in its brand new file at the nation’s debt profile launched on Friday, April 4.

The file additionally highlighted a area -on- area upward push of 1. sixty five in line with cent from N142.32tn ($88.89bn) as of September 2024, underscoring a steady boom in debt degrees over the last area of the year.

According to the DMO, “The surge in public debt become more often than not pushed with the aid of using large will increase in each outside and home borrowings.” Nigeria’s outside debt rose with the aid of using 83.89 in line with cent, from N38.22tn ($42.50bn) in December 2023 to N70.29tn ($45.78bn) in December 2024, a upward push attributed to clean outside borrowings and the effect of the naira’s depreciation, which inflated the naira price of dollar-denominated loans.

Domestic debt additionally noticed a large upward push of 25. seventy seven in line with cent, growing from N59.12tn ($ sixty five .73bn) to N74.38tn ($48.44bn) in the equal period. The Federal Government’s home debt rose from N53.26tn to N70.41tn, a 32.19 in line with cent jump, indicating a developing dependence on nearby borrowing to fund finances deficits and infrastructural development.

However, home debt held with the aid of using states and the Federal Capital Territory dropped from N5.86tn to N3.97tn, reflecting a 32.27 in line with cent decline. The DMO stated that this reduction “ factors to a greater careful technique with the aid of using a few subnational governments in the direction of debt accumulation at some point of the year.”

On a quarterly basis, the general public debt rose with the aid of using N2.35tn among September and December 2024. External debt expanded with the aid of using N1.4tn, from N68.89tn ($43.03bn) to N70.29tn ($45.78bn), at the same time as home debt grew barely with the aid of using 1.29 in line with cent from N73.43tn ($45.87bn) to N74.38tn ($48.44bn).

The Federal Government’s home debt rose from N69.22tn to N70.41tn over the last area , while debt attributed to the states and the FCT declined from N4.21tn to N3.97tn, a 5. sixty nine in line with cent drop.

As of the stop of 2024, outside debt constituted 48. fifty nine in line with cent of Nigeria’s general public debt, at the same time as home debt made up 51. forty one in line with cent. This displays a distinctly balanced structure, aleven though analysts have raised issues over the developing reliance on overseas debt to bridge investment gaps.

The breakdown of outside debt indicates the Federal Government accounted for N62.92tn ($40.98bn), at the same time as states and the FCT held N7.37tn ($4.80bn). For home debt, the Federal Government owed N70.41tn ($45.86bn), with the states and the FCT accounting for N3.97tn ($2.58bn).

The DMO’s findings have raised clean issues amongst economists approximately Nigeria’s financial health. The sharp boom in outside debt, in particular, factors to expanded vulnerability to change fee volatility and worldwide monetary shifts. With the naira persevering with to depreciate, the value of servicing Nigeria’s overseas debt may want to upward push further, setting extra stress on public finances.