Nigeria’s public debt reached N144.67 trillion ($94.23 billion) by the end of December 2024, marking a 48.58% increase from the previous year. The surge was largely driven by increased domestic borrowing to fund budget deficits and infrastructure projects, while debt at the state level saw a decline. Nigeria's public debt has significantly risen, reaching N144.67 trillion ($94.23 billion) by the close of 2024, reflecting a 48.58% increase from N97.34 trillion ($108.23 billion) recorded the previous year. This surge was driven mainly by the Federal Government's growing reliance on domestic borrowing to cover budget deficits and fund infrastructure projects.
According to the Debt Management Office (DMO), the national debt showed a quarter-on-quarter rise of 1.65%, moving from N142.32 trillion ($88.89 billion) in September 2024. The DMO's report revealed that the domestic debt of the Federal Government increased by 32.19%, from N53.26 trillion to N70.41 trillion, reflecting the government's increased dependence on local borrowing. However, debt owed by states and the Federal Capital Territory (FCT) decreased by 32.27%, falling from N5.86 trillion to N3.97 trillion.
This rising public debt poses a challenge for the country as it continues to grapple with fiscal sustainability and financing development needs. The government has been using local loans to close funding gaps, but the growing debt burden raises concerns about future repayments and the impact on Nigeria's economic stability.
