The latest report from the Nigerian Bureau of Statistics (NBS) reveals a significant rise in Nigeria’s public debt stock, reaching N97.34 trillion (108.23 billion dollars) in the fourth quarter of 2023.
This marks an increase from N87.91 trillion (114.35 billion dollars) recorded in the third quarter of the same year.
Released on Tuesday in Abuja, the Nigerian Domestic and Foreign Debt Report for Q4 2023 highlights a notable growth rate of 10.73 percent quarter-on-quarter basis.
The report underscores the composition of Nigeria’s public debt, encompassing both external and domestic debt.
According to the NBS, Nigeria’s external debt stood at N38.22 trillion (42.50 billion dollars) in Q4 2023, while domestic debt reached N59.12 trillion (65.73 billion dollars).
The proportion of external debt to total public debt was reported at 39.26 percent, with domestic debt constituting 60.74 percent.
A breakdown by states reveals varying levels of debt obligations. Lagos State leads in domestic debt, recording N1.05 trillion in Q4 2023, followed by Delta State with N373.41 billion. Conversely, Jigawa state registered the lowest domestic debt at N42.76 billion, trailed by Kebbi at N60.69 billion.
In terms of external debt, Lagos State also takes the lead with 1.24 billion dollars, followed by Kaduna State with 587.07 million dollars. On the other hand, Borno State recorded the lowest external debt at 20.49 million dollars, with Yobe State following closely at 21.49 million dollars.
The surge in public debt highlights the financial challenges facing Nigeria, necessitating strategic measures to manage debt levels effectively and ensure sustainable economic growth.
As the government navigates these challenges, fiscal discipline and prudent debt management strategies will be crucial in safeguarding the nation’s economic stability and future prosperity.