Nigeria’s public debt reached N142.3 trillion by September 2024, an increase of N8 trillion from June. The rise is largely due to domestic borrowing and naira depreciation. The federal government’s debt rose while state debts declined slightly. Nigeria also raised $2.2 billion through a Eurobond auction.
Nigeria's total public debt reached N142.3 trillion in the third quarter of 2024, marking an N8 trillion increase from N134.3 trillion in June 2024, according to the Debt Management Office (DMO). This rise, approximately 5.97%, is mainly attributed to increasing domestic borrowing and the depreciation of the naira, which impacted the value of external debt when converted to local currency.
The public debt consists of both domestic and external debt obligations across the federal and state governments, including the Federal Capital Territory (FCT). Domestic debt now stands at N73.4 trillion, while external debt is N68.8 trillion. The depreciation of the naira, which weakened from N1,470.19/$ in June to N1,601.03/$ by September, significantly affected the external debt conversion rate.
The federal government holds the largest share of domestic debt, which rose from N66.96 trillion to N69.22 trillion during the period. In contrast, state and FCT debts decreased slightly from N4.27 trillion in June to N4.21 trillion by September.
In December 2024, the federal government raised $2.2 billion through a Eurobond auction, marking a return to the international capital market. This effort is part of Nigeria’s strategy to manage its debt and maintain investor confidence. The DMO has assured that the country has made sufficient budgetary provisions to meet its debt obligations, emphasizing its commitment to responsible debt management.
