By: Daure David
Nigeria’s national debt has surged to a staggering ₦142.3 trillion as of September 30, 2024, marking a 5.97% increase (₦8.02 trillion) from the ₦134.3 trillion recorded in June 2024, according to the latest data from the Debt Management Office (DMO).
The breakdown reveals that Nigeria’s external debt obligations now total ₦68.89 trillion, while domestic borrowings stand at ₦73.4 trillion. In dollar terms, the total public debt saw a modest increase of 0.29%, rising from $42.90 billion in June to $43.03 billion by the end of September. However, the naira value of external debt experienced a significant jump of 9.22%, from ₦63.07 trillion to ₦68.89 trillion during the same period.
On the other hand, domestic debt grew by 3.10% in naira terms, increasing from ₦71.22 trillion to ₦73.43 trillion. In dollar terms, however, domestic debt decreased by 5.34%, from $48.45 billion to $45.87 billion.
The federal government is responsible for the majority of the domestic debt, which rose from ₦66.96 trillion in June to ₦69.22 trillion in September. Meanwhile, the debt owed by states and the Federal Capital Territory (FCT) saw a slight decline, decreasing from ₦4.27 trillion to ₦4.21 trillion.
This massive increase in the country’s debt raises concerns about the economic future of Africa’s largest economy. Analysts have warned that the growing debt burden could lead to more financial strain on Nigeria’s already stretched public finances.
With each Nigerian now owing an average of ₦700,000 in national debt, the question remains whether the government can find a sustainable path to managing this mounting financial pressure while fostering economic growth and development.
The DMO’s report signals a need for urgent policy responses, as the nation grapples with the dual challenge of servicing its growing debt while addressing other critical economic and social issues.
