The Debt Management Office (DMO) of Nigeria has revealed that the nation’s total public debt soared to N121.67 trillion (approximately $91.46 billion) as of March 31, 2024.
This marks a significant increase from the N97.34 trillion (approximately $108.23 billion) recorded at the end of December 2023, indicating a rise of N24.33 trillion or 24.99% within a mere three-month period.
According to the DMO, this total encompasses both domestic and external debts owed by the Federal Government of Nigeria (FGN), the thirty-six state governments, and the Federal Capital Territory (FCT).
Of this total, domestic debt accounted for N65.65 trillion (approximately $46.29 billion), constituting 53.96% of the overall debt.
Meanwhile, external debt amounted to N56.02 trillion (approximately $42.12 billion).
The surge in domestic debt is attributed to new borrowings aimed at financing the 2024 Budget deficit and the securitization of a portion of the N7.3 trillion Ways and Means Advances from the Central Bank of Nigeria (CBN).
Excluding the impact of naira exchange rate movements in the first quarter of 2024, the domestic debt alone increased by N6.53 trillion or 11.05% from the end of December 2023.
Patience Oniha, the Director General of the DMO, highlighted that despite challenges, the federal government managed to raise N4.5 trillion out of its N6 trillion target in the 2024 budget, with domestic securities playing a crucial role in government expenditure.
The rapid accumulation of debt underscores ongoing fiscal challenges in Nigeria, where managing debt levels amidst economic pressures remains a critical concern for policymakers.