The Debt Management Office (DMO) has disclosed that Nigeria’s total public debt has surged to a staggering N144.67 trillion as of December 2024, representing a 48.58 per cent increase from the N97.34 trillion recorded at the end of 2023.
This is according to the latest report released by the DMO on Saturday evening, April 5, which is the year-on-year analysis of the data revealing that the country’s debt profil rose by N47.32 trillion within 12 months.
On a quarterly basis, the debt increased by 1.65 percent from N142.32 trillion recorded in September 2024.
The steady climb in the debt stock of Africa’s most populous nation continues to be driven by a combination of rising external and domestic borrowings.
According to the DMO report, Nigeria’s external debt jumped by 83.89 percent, reaching N70.29 trillion in December 2024, up from N38.22 trillion in the corresponding period of 2023.
Domestic debt also rose significantly by 25.77 percent, standing at N74.38 trillion from N59.12 trillion at the end of December 2023.
A further breakdown shows that the Federal Government is responsible for the lion’s share of both external and domestic debts.
For external debt, the Federal Government owed N62.92 trillion ($40.98 billion), while state governments and the Federal Capital Territory (FCT) accounted for N7.37 trillion ($4.80 billion).
In the domestic segment, the Federal Government held N70.41 trillion ($45.86 billion), and the states plus FCT owed N3.97 trillion ($2.58 billion).
The rapid rise in public debt has triggered alarm among financial experts and economists.
Reacting to the report, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, expressed deep concern over the ballooning debt profile, especially given the country’s widening infrastructure gap.
“Nigeria’s growing debt burden is not sustainable in the long term. It is particularly worrisome because the borrowings are not significantly translating into visible infrastructure or economic transformation,” Yusuf stated.
He also urged the Federal Government to explore alternative funding models and improve fiscal discipline to avoid plunging the country into deeper financial distress.
With the debt numbers continuing on an upward trajectory, economists say Nigeria must urgently review its debt management strategy to prevent future economic instability.
