Nigeria’s total public debt rose to N121.67 trillion or about $91.46 billion, increasing by N24.33 trillion or 24.99 percent in the first quarter ended March 31, 2024, according to the Debt Management Office (DMO).
According to the DMO, domestic debt stood at N65.65 trillion or $46.29 billion while external debt was N56.02 trillion or $42.12 billion.
The DMO report indicated that total public debt rose from N97.34 trillion in December 2023 to N121.67 trillion in the first quarter of 2024,with the debts comprising the total domestic and external debts of the federal government, the 36 state governments, and the Federal Capital Territory (FCT).
“Nigeria’s total public debt stood at N121.67 trillion ($91.46 billion) as of March 31, 2024. The comparative figure for December 31, 2023, was N97.34 trillion ($108.23 billion). Total Domestic Debt was N65.65 trillion ($46.29 billion) while total external debt was N56.02 trillion ($42.12 billion),” the report revealed.
The DMO’s report indicated that the drop in external debt from Q4 2023 to Q1 2024 was largely driven by the naira’s depreciation against the dollar, which caused a $16.77 billion decrease in dollar-denominated debt, representing an 18.34 percent reduction. This decline, it stated, was due to the DMO converting external debts from dollar to naira using an official exchange rate of N1,330 per dollar, which was significantly higher than the N899.39 per dollar used in December 2023.
Focusing on the domestic debt aspect, Nigeria’s debt load ballooned from N59.12 trillion in December 2023 to N65.65 trillion in March 2024, excluding the naira’s influence on external debt. The 36 states and the Federal Capital Territory (FCT) also contributed to the overall debt burden, accruing a total external debt of $3.1 billion and domestic debt of N4.068 trillion.
The DMO also noted that apart from the naira’s depreciation, two other factors fueled Nigeria’s spiraling debt, including the need to borrow to finance the 2024 budget deficit and the conversion of N7.3 trillion Ways and Means advances from the Central Bank of Nigeria into tradable securities, which added to the domestic debt.
