Nigeria’s public debt has reached a staggering N97.341 trillion (108.229 billion dollars) as of December 31, 2023, according to the latest data from the Debt Management Office (DMO) in Abuja.
This significant amount includes both domestic and external debt held by the Federal Government, the 36 state governments, and the Federal Capital Territory. The total debt has seen a substantial increase of N9.43 trillion compared to the previous figure from September 30, 2023.
The rise in debt can be attributed to new domestic borrowing by the Federal Government to help finance the deficit in the 2024 budget, as well as disbursements from multilateral and bilateral lenders.
Of the total debt stock, domestic debt accounts for 61%, amounting to N59.12 trillion, while external debt makes up the remaining 39% at N38.22 trillion.
The DMO highlights that the country’s external debt is primarily sourced from multilateral and bilateral lenders, aligning with Nigeria’s debt management strategy. Multilateral loans make up 49.77% of the external debt stock, with bilateral loans contributing 16.02%.
The DMO emphasizes that a significant portion of these loans are concessional and semi-concessional, totaling 63.79%. Despite the growing debt burden, the DMO assures that they are implementing best practices in public debt management, and ongoing efforts to boost revenue will help ensure debt sustainability.
As Nigeria navigates its debt challenges, it remains crucial for authorities to prioritize financial stability and sustainable economic growth. The country’s ability to manage its debt effectively will be key to securing a prosperous future for its citizens.
