Nigeria’s total public debt stock rose sharply to ₦144.67 trillion ($94.23 billion) as of December 31, 2024, marking a 48.58% increase from ₦97.34 trillion ($108.23 billion) recorded at the end of 2023, according to the latest data released by the Debt Management Office (DMO) on Friday.
The report also indicated a quarter-on-quarter rise of 1.65%, up from ₦142.32 trillion ($88.89 billion) in September 2024, underscoring continued fiscal pressure during the final quarter of the year.
A year-on-year breakdown revealed a ₦47.32 trillion increase, primarily driven by sharp expansions in both external and domestic borrowings. Notably, external debt surged by 83.89%, jumping from ₦38.22 trillion ($42.50 billion) in December 2023 to ₦70.29 trillion ($45.78 billion) by the end of 2024.
The DMO attributed this significant rise to new external loans and the impact of naira depreciation, which inflated the naira value of dollar-denominated debt obligations.
The steep debt escalation comes amid government efforts to finance budget deficits and support critical infrastructure projects. However, analysts have warned that Nigeria’s growing debt burden could strain future revenues, complicate debt servicing, and hinder long-term economic stability if not matched by robust revenue generation and fiscal discipline.
Domestic debt also rose by 25.77 per cent from N59.12tn ($65.73bn) at the end of December 2023 to N74.38tn ($48.44bn) in December 2024.
The Federal Government’s domestic debt component grew significantly from N53.26tn to N70.41tn, reflecting a 32.19 per cent increase.
This growth indicates the government’s continued reliance on local borrowing to finance budget deficits and infrastructure projects.