••Alarm bells ring as public debt surges by nearly 50%, fueled by aggressive borrowing.
By Suleiman Ibrahim
Nigeria’s public debt has ballooned to a staggering N144.67 trillion by the end of December 2024, marking a dramatic 48.58 percent increase from the N97.34 trillion recorded just a year prior. The latest figures, released by the Debt Management Office (DMO), reveal a year-on-year surge of N47.32 trillion, painting a concerning picture of the nation’s fiscal trajectory.
The DMO report further indicates a consistent upward trend, with a 1.65 percent rise from the N142.32 trillion recorded at the close of the third quarter of 2024. This relentless accumulation of debt is primarily attributed to aggressive borrowing both domestically and internationally.
A deep dive into the debt composition reveals a significant surge in external obligations. Nigeria’s external debt soared by a massive 83.89 percent, reaching N70.29 trillion in December 2024, compared to N38.22 trillion in the corresponding period of 2023. Similarly, domestic debt witnessed a substantial 25.77 percent increase, climbing to N74.38 trillion from N59.12 trillion over the same timeframe.
Breaking down the figures further, the Federal Government accounts for the lion’s share of both external (N62.92 trillion) and domestic (N70.41 trillion) debt. States and the Federal Capital Territory (FCT) hold N7.37 trillion and N3.97 trillion in external and domestic debt respectively.
The exponential growth in Nigeria’s debt profile has triggered widespread apprehension among financial analysts and economists. Dr. Muda Yusuf, the Chief Executive Officer of the Centre for Promotion of Private Enterprises, has voiced strong criticism over the escalating debt, particularly in light of the country’s persistent and significant infrastructural deficit. The rapid accumulation of debt raises serious questions about the sustainability of Nigeria’s fiscal policy and its potential impact on future economic growth and development.
