Nigeria’s public debt has increased by approximately N57.3 trillion over the first 18 months of President Bola Tinubu’s administration, according to data from the Debt Management Office (DMO). This marks a 65.6% rise from N87.38 trillion at the end of June 2023 to N144.67 trillion by December 2024.
The surge is primarily attributed to a significant depreciation of the naira, which weakened from N770.38 to N1,535.32 per US dollar during the period. This currency devaluation inflated the naira value of Nigeria’s foreign-denominated debts, even as the actual dollar amount remained relatively stable.
In dollar terms, Nigeria’s total public debt decreased by 17% from $113.42 billion in June 2023 to $94.23 billion in December 2024. However, the naira value of this debt nearly doubled due to the exchange rate fluctuations.
The federal government remains the largest contributor to the debt, accounting for over 90% of the total. Its domestic debt rose from N48.31 trillion in June 2023 to N70.41 trillion by December 2024, reflecting a 45.7% increase. This growth includes the conversion of N22.7 trillion in Ways and Means advances from the Central Bank of Nigeria into tradable bonds.
External debt also saw a significant increase, with the federal government’s external obligations rising from N29.9 trillion in June 2023 to N62.92 trillion by December 2024. This shift in the debt composition has led to external debt now accounting for nearly half of Nigeria’s total debt stock.
Despite the nominal decrease in dollar terms, the substantial rise in the naira value of both domestic and external debts raises concerns about the sustainability of Nigeria’s debt profile. The government continues to seek strategies to manage and service this growing debt burden effectively.
