See What Nigeria’s Public Debt increase to, within three months
Nigeria’s Public Debt Soars to N121.67tn, Increasing by N24.33tn in Three Months
The Debt Management Office (DMO) has reported a significant rise in Nigeria’s total public debt, which has surged to N121.67 trillion, marking an increase of N24.33 trillion or 24.99% in just three months.
This jump brings the country’s public debt up from N97.34 trillion in December 2023 to N121.67 trillion by March 2024.
The DMO’s report details that the total public debt includes the combined domestic and external debts of the Federal Government, the thirty-six state governments, and the Federal Capital Territory.
As of March 31, 2024, the debt breakdown shows domestic debt at N65.65 trillion and external debt at N56.02 trillion.
The sharp increase in public debt is largely attributed to the devaluation of the naira, which has led to a reduction of $16.77 billion or 18.34% in dollar terms.
Excluding the impact of naira exchange rate fluctuations in the first quarter of 2024, domestic debt has increased by N6.53 trillion or 11.05%, primarily due to new borrowing to partially finance the 2024 budget deficit and the securitization of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria (CBN).
Additionally, borrowing from the World Bank has significantly contributed to the rising public debt. Reports indicate that the government has secured loans totaling $4.95 billion from the World Bank over the past year, raising concerns about the growing costs of servicing external debt. The government is also expecting to receive new loans worth $4.4 billion from the World Bank and the African Development Bank over the next year.
