- Nigeria’s Public Debt Climbs to Record N142.3 Trillion
- Naira Depreciation Fuels Debt Surge
- FG Bonds Dominate Domestic Borrowing
Nigeria’s total public debt soared to N142.3 trillion by September 30, 2024, reflecting a 5.97% increase from June, the Debt Management Office (DMO) reports. The surge, equivalent to N8.02 trillion, was attributed to significant domestic borrowing and the naira’s depreciation, which dropped from N1,470.19/$ in June to N1,601.03/$ in September.
Federal Government bonds, which rose to N54.65 trillion, dominated domestic debt, accounting for 78.95% of the total. Meanwhile, Treasury Bills saw a slight decline to N11.73 trillion, reflecting efforts to manage rollover risks.
External debt also climbed to $43.03 billion, with its naira equivalent rising 9.22% to N68.89 trillion due to exchange rate fluctuations. Despite these increases, loans from China, Nigeria’s largest bilateral lender, decreased by $99.98 million.
Between January and June 2024, the Federal Government spent $2.24 billion servicing external debt, highlighting concerns over debt sustainability.
Key Takeaways:
- Domestic debt rose by 3.1%, driven by naira-denominated bonds.
- External debt grew due to currency depreciation despite minimal new borrowing.
- Efforts to reduce short-term debt risks are ongoing.
Debt management and currency stabilization remain critical for Nigeria’s fiscal health.
