Nigeria’s total public debt has increased significantly to N121.67 trillion as of March 31, 2024.
The Debt Management Office (DMO) in a statement yesterday evening said this figure encompasses the combined domestic and external debts of the Federal Government of Nigeria (FGN), the 36 state governments, and the Federal Capital Territory (FCT).
This is a significant rise of N24.33 trillion or 24.99 per cent within a space of three months. DMO had announced that the total public debt as of December 31, 2023, stood at N97.34 trillion.
The increase is driven majorly by naira devaluation, as the debt is denominated in dollar terms. Nigeria is facing forex volatility which has led to the devaluation of the local currency.
The breakdown of the total debt as of March 31, 2024, shows that the domestic debt component was N65.65 trillion (approximately $46.29 billion), while the external debt component amounted to N56.02 trillion (approximately $42.12 billion).
“Excluding Naira exchange rate movements in the first quarter of 2024, only the domestic debt component of the total debt stock grew from N59.12 trillion on Dec. 31, 2023 to N65.75 trillion on March 31.
“The increase was from new borrowing to part-finance the 2024 budget deficit and securitisation of a portion of the N7 3 trillion Ways and Means advances at the Central Bank of Nigeria (CBN),” she said.
She said that improvement in government revenue would go a long way in ensuring debt sustainability, while borrowing, as provided in the 2024 budget would continue.
