Nigeria’s debt has surged to a staggering N134.3 trillion in the second quarter of 2024.
This was an increase of 10.35% from the N121.7 trillion ($91.5 billion) recorded in the first quarter and announced by the Debt Management Office (DMO).
According to an official document from the Ministry of Finance, the increase, mainly driven by the devaluation of the naira, highlights ongoing challenges related to exchange rate volatility.
The document reads, “In Q2 2024, the debt stock grew in naira terms to N134.3 trillion ($91.3 billion) from N121.7 trillion ($91.5 billion) in Q1 2024, driven mainly by exchange rate devaluation. The dollar amount of debt was roughly the same.”
Notably, while the total debt grew in naira terms, the dollar equivalent of the debt remained relatively stable, underlining the impact of currency movements on debt valuation.
Nigeria’s domestic and external debt portfolios reveal strategic borrowing trends, with domestic debt continuing to dominate the public debt landscape in Q2 2024.
Domestic debt accounted for 53% of the total, amounting to N71.2 trillion ($48.4 billion), while external debt made up 47%, equivalent to N63.1 trillion ($42.9 billion).
The data further shows a rising trend in the country’s debt-to-GDP ratio, which continues to escalate to over 50%, raising concerns over fiscal sustainability.
However, this development comes amid series of borrowing sprees ongoing between Tinubu and the World Bank.
