In a development that underscores Nigeria’s growing fiscal obligations, the country’s total public debt stock has risen to N144.67tn ($94.23bn) as of December 31, 2024. This marks a significant 48.58 per cent increase from the N97.34tn ($108.23bn) recorded at the end of December 2023.

Data from the Debt Management Office showed a quarter-on-quarter rise of 1.65 per cent, with the debt growing from N142.32tn ($88.89bn) in September 2024. The consistent upward trend points to the continued expansion of Nigeria’s borrowing footprint both locally and internationally.

On a year-on-year basis, the public debt surged by N47.32tn, driven largely by increased external and domestic borrowing. This move reflects efforts by the government to bridge funding gaps and finance critical development projects amid economic challenges.

External debt experienced the most significant growth, rising by 83.89 per cent from N38.22tn ($42.50bn) in December 2023 to N70.29tn ($45.78bn) at the end of 2024. This jump was influenced by fresh foreign loans and the impact of naira depreciation on dollar-denominated obligations.

Domestic borrowings also contributed to the debt surge, climbing by 25.77 per cent within the same period. The figure rose from N59.12tn ($65.73bn) in December 2023 to N74.38tn ($48.44bn) at the close of 2024, highlighting the government’s reliance on local funding sources.

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The Federal Government accounted for the bulk of domestic debt, which rose from N53.26tn to N70.41tn — a 32.19 per cent increase. This reflects heightened borrowing to support recurrent expenditure and capital projects outlined in the national budget.

Conversely, states and the Federal Capital Territory, FCT, reduced their domestic debt exposure, bringing it down from N5.86tn to N3.97tn. This 32.27 per cent decline suggests a more cautious approach to debt by some subnational entities.

In the final quarter of 2024, Nigeria’s external debt rose by N1.4tn, from N68.89tn ($43.03bn) in September to N70.29tn ($45.78bn) in December. This was driven by new loan agreements and a weakening local currency, which increased the naira value of foreign debt.

Domestic debt followed with a modest rise of 1.29 per cent, moving from N73.43tn in September to N74.38tn by year-end. The Federal Government’s domestic component climbed slightly, while that of states and the FCT fell by 5.69 per cent.

By December 2024, external debt accounted for 48.59 per cent of Nigeria’s total debt, while domestic debt made up 51.41 per cent. Analysts have expressed concern over the implications of growing foreign loans, citing exchange rate risks and rising debt servicing costs in a fragile economic environment.

NAN