Nigeria’s total public debt has risen to a staggering ₦144.67 trillion ($94.23 billion) as of December 31, 2024, reflecting a 48.58 per cent increase compared to ₦97.34 trillion ($108.23 billion) recorded at the end of 2023. The figures were disclosed in the latest report released by the Debt Management Office (DMO) on Friday.

According to the report, the debt stock also grew quarter-on-quarter by 1.65 per cent from ₦142.32 trillion ($88.89 billion) in September 2024. This persistent upward trend underscores mounting fiscal pressures amid rising borrowings.

A breakdown of the figures reveals that the sharp increase was driven by significant growth in both external and domestic borrowings. Nigeria’s external debt surged by 83.89 per cent year-on-year, rising from ₦38.22 trillion ($42.50 billion) in December 2023 to ₦70.29 trillion ($45.78 billion) by the end of 2024. The DMO attributed this to fresh foreign loans and the depreciation of the naira, which increased the local currency value of dollar-denominated debt.

Meanwhile, domestic debt rose by 25.77 per cent within the same period, climbing from ₦59.12 trillion ($65.73 billion) to ₦74.38 trillion ($48.44 billion). A closer look shows the Federal Government accounted for the bulk of the increase, with its domestic debt ballooning from ₦53.26 trillion to ₦70.41 trillion — a 32.19 per cent jump. This reflects the government’s continued reliance on domestic borrowing to finance budget deficits and infrastructure projects.

In contrast, domestic debt held by state governments and the Federal Capital Territory (FCT) declined from ₦5.86 trillion to ₦3.97 trillion, marking a 32.27 per cent decrease. Analysts suggest this drop may indicate a more cautious borrowing stance by subnational entities amid growing economic uncertainty.

Quarter-on-quarter data shows Nigeria’s total debt increased by ₦2.35 trillion from September to December 2024. External debt rose by ₦1.4 trillion, buoyed by additional foreign loans and further weakening of the naira. Domestic debt edged up 1.29 per cent during the same period.

As of the end of 2024, external debt comprised 48.59 per cent of Nigeria’s total public debt, while domestic debt accounted for 51.41 per cent — a relatively balanced composition. However, the rising dependence on external loans has sparked concerns about exchange rate vulnerability and debt servicing costs.

A closer breakdown reveals the Federal Government held ₦62.92 trillion ($40.98 billion) of the external debt, while states and the FCT were responsible for ₦7.37 trillion ($4.80 billion). In the domestic segment, the Federal Government’s debt stood at ₦70.41 trillion ($45.86 billion), and that of states and the FCT at ₦3.97 trillion ($2.58 billion).

Economists have raised alarms over the country’s growing debt profile, warning that increased external borrowings could strain Nigeria’s fiscal stability, especially amid continued currency depreciation and global economic uncertainties.

As the government continues to grapple with budget deficits, inflation, and revenue shortfalls, experts are calling for a more strategic approach to debt management and economic planning to prevent long-term fiscal distress.