Nigeria’s total public debt climbed to N142.3 trillion as of September 30, 2024, reflecting a 5.97% increase (N8.02 trillion) from the N134.3 trillion recorded in June 2024.
The Debt Management Office (DMO) attributes this rise to surging domestic borrowing and the sharp depreciation of the naira, which significantly inflated the naira-equivalent value of external debt.
According to DMO data, external debt in dollar terms recorded a marginal increase of 0.29%, rising from $43.03 billion in June to $43.15 billion by September. However, the naira value of external debt soared by 9.22%, jumping from N63.07 trillion to N68.89 trillion, fueled by the weakening exchange rate, which dropped from N1,470.19/$ to N1,601.03/$ within the same period.
In contrast, domestic debt presented mixed trends. While it fell by 5.34% in dollar terms—from $48.45 billion to $45.87 billion—the naira value rose by 3.10%, increasing from N71.22 trillion to N73.43 trillion.
Most of the domestic debt was attributed to the Federal Government, whose obligations grew from N66.96 trillion in June to N69.22 trillion by September. Meanwhile, debt owed by states and the Federal Capital Territory (FCT) experienced a slight decline, moving from N4.27 trillion to N4.21 trillion.
The data highlights growing fiscal pressures from a depreciating currency and rising domestic borrowing, emphasizing the urgent need for effective debt management strategies to stabilize Nigeria’s public finances.
