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By Akeem Atoyebi
Nigeria’s total public debt sharply climbed to N144.67 trillion (approximately $94.23 billion) as of December 31, 2024, representing a 48.58 per cent increase compared to N97.34 trillion (or $108.23 billion) recorded at the end of December 2023.
This comes as it is projected that the country’s debt may cross N157 trillion by December 2025. This is in view of the planned borrowing of N13 trillion to finance the 2025 budget deficit.
The Debt Management Office (DMO) which made this known in its latest report on the country’s public debt profile, also stated that a quarter-on-quarter rise of 1.65 per cent from the N142.32 trillion ($88.89 billion) was recorded at the end of September 2024, spotlighting the continuous increase in the nation’s debt burden during the final quarter of the year.
The uptick in public debt was primarily caused by significant increases in both external and domestic borrowings.
Nigeria’s external debt increased by 83.89 per cent from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) in December 2024.
The sharp rise according to the report was due to new external borrowings and the impact of naira depreciation, which raised the naira equivalent of dollar-denominated debt.
The DMO said domestic debt also rose by 25.77 per cent from N59.12 trillion ($65.73 billion) at the end of December 2023 to N74.38 trillion ($48.44 billion) in December 2024.
The Federal Government’s domestic debt component grew significantly from N53.26 trillion to N70.41 trillion, reflecting a 32.19 per cent increase.
