Nigeria’s Public Debt Soars to N121.67 Trillion Due to Naira Devaluation

Nigeria’s Debt Management Office (DMO) has announced a significant rise in the nation’s total public debt, which now stands at N121.67 trillion (approximately $91.46 billion) as of March 31, 2024.

This figure represents the combined domestic and external debts of the Federal Government of Nigeria (FGN), the thirty-six state governments, and the Federal Capital Territory (FCT).

The increase in total debt is primarily attributed to the devaluation of the naira. Notably, in dollar terms, the total debt decreased by $16.77 billion or 18.34%.

The domestic debt component accounts for 53.96% of the total debt, with the domestic debt amounting to N65.65 trillion (approximately $46.29 billion) and external debt totalling N56.02 trillion (approximately $42.12 billion).

A closer look at the figures by Nairametrics revealed that the domestic debt saw a significant increase from N59.12 trillion at the end of December 2023 to N65.65 trillion as of March 31, 2024. This marks a rise of N6.53 trillion or 11.05%, excluding the impact of naira exchange rate movements.

This surge in domestic debt is largely due to new borrowing aimed at partially financing the 2024 Budget deficit and the securitisation of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria (CBN).

The DMO’s statement detailed the changes in the debt profile: “Nigeria’s Total Public Debt, comprising the Total Domestic and External Debts of the Federal Government of Nigeria (FGN), the thirty-six (36) state governments, and the Federal Capital Territory (FCT), stood at N121.67 trillion (USD91.46 billion) as at March 31, 2024.

The comparative figure for December 31, 2023, was N97.34 trillion (USD108.23 billion). Total Domestic Debt was N65.65 trillion (USD46.29 billion) while Total External Debt was N56.02 trillion (USD42.12 billion).

“Excluding Naira exchange rate movements in Q1 2024, only the Domestic Debt component of Total Public Debt grew from N59.12 trillion on December 31, 2023, to N65.65 trillion on March 31, 2024. The increase was from new borrowing to part-finance the 2024 Budget deficit and securitization of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria.”

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