BusinessNewsNigeriaNigeria’s Debt Burden Swells to N121 Trillion

Nigeria’s public debt has risen to N121.67 trillion, according to the Debt Management Office, DMO.

This represents a N24.33 trillion or 24.99 per cent increase over the N97.34 trillion recorded in December 2023.

The DMO attributes this surge primarily to new domestic borrowing by the federal government to finance a portion of the 2024 budget deficit. Additionally, disbursements from multilateral and bilateral lenders have contributed to the rise.

“The increase was from new borrowing to part-finance the 2024 Budget deficit and securitisation of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria,” the DMO said.

The breakdown reveals a domestic debt stock of N65.65 trillion and an external debt stock of N56.02 trillion.

The public debt includes the domestic and external debt stocks of the federal government, the 36 states, and the Federal Capital Territory, FCT.

The increase in public debt has raised concerns about the country’s debt sustainability and the ability of the government to service its debts.

Financial experts warn that this mounting debt burden could pose a challenge to Nigeria’s economic stability. Servicing the debt, which involves regular interest payments and eventual repayment of the principal amount, consumes a significant portion of government revenue. This can limit funds available for crucial investments like infrastructure, healthcare, and education.

However, the DMO has assured the public of the government’s commitment to responsible debt management. “Whilst borrowing, as provided in the 2024 Appropriation Act, will continue, we expect improvements in the government’s revenue to enhance debt sustainability” it stated.