Nigeria’s total public debt has reached a staggering N144.67 trillion as of December 31, 2024, reflecting a significant year-on-year increase of 48.58% compared to N97.34 trillion recorded at the end of December 2023. This substantial rise is attributed to both external and domestic borrowings, with external debt experiencing an 83.89% increase from N38.22 trillion to N70.29 trillion, largely due to new borrowings and the impact of naira depreciation on dollar-denominated debt.
The Debt Management Office (DMO) reported that domestic debt also grew by 25.77% from N59.12 trillion to N74.38 trillion over the same period. The Federal Government’s domestic debt component saw a notable increase of 32.19% from N53.26 trillion to N70.41 trillion, highlighting the government’s continued reliance on local borrowing to finance budget deficits and infrastructure projects.
In contrast, the domestic debt owed by states and the Federal Capital Territory (FCT) decreased by 32.27% from N5.86 trillion to N3.97 trillion, indicating a more cautious approach by subnational governments towards debt accumulation. The rise in public debt has raised concerns about Nigeria’s fiscal stability, particularly given the nation’s vulnerability to exchange rate fluctuations and global economic conditions.
As Nigeria’s public debt continues to grow, projections suggest it may exceed N157 trillion by December 2025, driven by planned borrowings of N13 trillion to finance the 2025 budget deficit. This trend underscores the need for careful fiscal management to ensure sustainable economic growth and stability.
