Amid growing concerns over Nigeria’s ongoing reliance on loans, new data from the country’s recently released debt profile highlights a rising dependence on borrowing.
The latest figures reveal that as of September 2024, Nigeria’s total public debt had reached N142 trillion. Of this, N68.8 trillion was external debt, while domestic debt stood at N73.4 trillion.
The data review shows that domestically, the federal government alone owes N69.2 trillion, while states and the Federal Capital Territory are responsible for N4.2 trillion.
The figures also reveal Nigeria’s heavy reliance on local sources for its loan portfolio.
The newly published debt profile indicates that Nigeria’s total debt has surpassed the N134.2 trillion owed as of June 2024.
As of June 2024, the country’s external debt was N63 billion, with domestic debt totaling N71.2 trillion. Within that, the federal government’s domestic debt stood at N66.9 billion, while states owed N4.2 billion.
Between July and September, the federal government borrowed an additional N2.2 trillion locally and another N5.8 trillion externally.
The devaluation of the naira may have worsened the country’s debt burden. In June 2024, the exchange rate was N1,470.19 to a dollar, but by September 2024, it had risen to N1,601.
This surge in borrowing contradicts Bola Tinubu’s earlier promises.
In August 2023, Tinubu vowed to reduce Nigeria’s dependence on loans. At the inauguration of the Presidential Committee on Fiscal and Tax Reforms, he acknowledged that debt servicing was consuming Nigeria’s limited resources, creating a vicious cycle of borrowing simply to service debts. He pointed out that this situation leaves little room for socio-economic development.
Despite these concerns, the administration has continued to rely heavily on loans, as reflected in the details published by the Debt Management Office.
When President Tinubu took office on May 29, 2023, Nigeria’s public debt stood at N87.3 trillion. By September 2024, the debt had risen by N54.7 trillion, reaching a total of N142 trillion.
