- Data: Each Nigerian Now Owes N656,000
By Abiola Olawale
As of September 30, 2024, Nigeria’s public debt has seen a considerable rise, soaring to a staggering N142 trillion, data published by the Debt Management Office (DMO) have revealed.
The latest data represent 5.97% increase (approximately N8.02 trillion) from June 2024’s figure of N134.3 trillion.
In the report published by the DMO, the surge in debt is primarily attributed to both domestic and external borrowings, with the naira’s depreciation against the dollar playing a significant role in inflating the external debt in naira terms.
A breakdown of the data indicated that external debt in dollar terms grew marginally by 0.29%, from $42.90 billion to $43.03 billion, while its naira equivalent surged by 9.22%, from N63.07 trillion to N68.89 trillion due to currency devaluation.
The composition of Nigeria’s debt includes various instruments like Federal Government Bonds, Nigerian Treasury Bills, and promissory notes, with bonds being the largest component. Domestically, the introduction of dollar-denominated bonds has added N1.47 trillion to the debt stock.
Meanwhile, there have been slight decreases in some domestic debt categories like Treasury Bills, showing efforts to manage short-term debt risks.
A more cursory look at the data showed that the Nigerian government relied more on domestic borrowings as it accounted for 51.6 percent of the total debt profile, with the FGN taking N69.2 trillion and state governments having N4.2 trillion as their debts.
Domestic debt reduced by 5.34 percent in dollar terms, falling from $48.45 billion in June to $45.87 billion in September. In naira terms, it rose by 3.10 percent from N71.22 trillion to N73.43 trillion during the period.
The federal government’s external debt accounted for $38.12 billion in September, up from $38.01 billion in June, while states and the Federal Capital Territory held $4.91 billion in external debt, a slight increase from $4.89 billion.
For domestic debt, the federal government’s obligations rose from N66.96 trillion to N69.22 trillion, while states and the FCT recorded a minor reduction from N4.27 trillion to N4.21 trillion.
Overall, Nigeria’s total public debt in dollar terms fell by 2.70 percent, from $91.35 billion in June to $88.89 billion in September.
However, Nigeria’s debt stock has grown from 78.13 percent recorded in June 2024 to 78.95 percent in September 2024, defying the DMO’s self-imposed public debt ceiling of 40 percent, as outlined in the agency’s Medium-Term Debt Management Strategy.
