Nigeria Nigeria's Public Debt Surges: Each Citizen Now Owes N396,376 as Debt Per Capita Soars

Nigeria's public debt has reached new heights, with each citizen now carrying a substantial debt burden of approximately N396,376.19, according to recent data from the National Bureau of Statistics (NBS). The figures, released by the NBS, underscore the alarming rise in the country's public debt, which surged by a staggering 75.27 percent in just three months.

The Debt Surge: At the end of the second quarter of 2023, Nigeria's total public debt had skyrocketed from N49.85 trillion in the first quarter to a staggering N87.38 trillion. This marked an unprecedented increase of N37.53 trillion within the span of a mere three months. The implications of this rapid surge are raising concerns among citizens and experts alike.

Debt Per Capita: To put the enormity of this debt into perspective, the International Consortium of Investigative Reporters (ICIR) calculated that each Nigerian citizen now carries a debt load exceeding N396,000. This eye-opening statistic is a result of dividing the total public debt by Nigeria's estimated population, which stands at approximately 220.4 million people, according to the World Poverty Clock.

Debt Breakdown: Breaking down the debt by category, the federal government holds a total external debt of N29.9 trillion, while the external debts of the 36 states and the Federal Capital Territory amount to N3.35 trillion. On the domestic front, the federal government's debt stands at N48.31 trillion, with the states and Federal Capital Territory accumulating N5.82 trillion in domestic debts.

Ways and Means Advances Controversy:The debt also includes the contentious N22.71 trillion Ways and Means Advances extended by the Central Bank of Nigeria (CBN) to the federal government. This practice allows the federal government to obtain short-term loans from the CBN for emergency purposes, but it is not without controversy, as it has led to concerns about adherence to regulations and accountability.

Impact on States:Lagos State recorded the highest domestic debt in Q2 2023, amounting to N996.44 billion, followed closely by Delta with N465.40 billion. In contrast, Jigawa State carried the lowest domestic debt burden, with N43.13 billion, and Kebbi State followed with N60.94 billion.

The surge in public debt is raising critical questions about Nigeria's fiscal management and the potential consequences for its citizens. As the nation grapples with this financial challenge, concerns over economic stability and the burden on future generations are mounting.