Nigeria’s total public debt has surged to N142.3 trillion as of September 30, 2024, marking a 5.97% increase from N134.3 trillion in June 2024. This significant rise is largely attributed to the depreciation of the naira, which has driven up the local currency cost of external obligations.
The external debt in dollar terms increased marginally by 0.29% to $43.03 billion in September, up from $42.90 billion in June. However, in naira terms, external debt jumped by 9.22% to N68.89 trillion, up from N63.07 trillion.
Domestic debt in dollar terms decreased by 5.34% to $45.87 billion, down from $48.45 billion. Domestic debt in naira terms rose by 3.10% to N73.43 trillion, up from N71.22 trillion.
The Federal Government’s external debt accounted for $38.12 billion in September, up from $38.01 billion in June. States and the Federal Capital Territory held $4.91 billion in external debt, a slight increase from $4.89 billion.
The Federal Government’s domestic debt obligations rose from N66.96 trillion to N69.22 trillion. The rising debt profile, particularly in naira terms, raises concerns over debt sustainability, especially with the exchange rate volatility driving up the local currency cost of external obligations.
Economic analysts have repeatedly warned about the risks associated with Nigeria’s growing debt burden. The increase in domestic debt highlights the Federal Government’s growing dependence on local markets to finance budget deficits amid constrained foreign exchange reserves and limited external borrowing options.