Abuja, Nigeria - Nigeria's total public debt has surged to N121.67 trillion as of March 31, 2024, marking a significant increase of N24.33 trillion or 24.99% within just three months, according to a recent announcement by the Debt Management Office (DMO).
The new figure represents a substantial rise from the total debt of N97.34 trillion recorded as of December 31, 2023. The DMO's report attributes this surge primarily to the devaluation of the naira, which has reduced the total debt in dollar terms.
The public debt comprises the total domestic and external debts of the Federal Government of Nigeria, the thirty-six state governments, and the Federal Capital Territory.
As of the latest report, the total domestic debt stands at N65.65 trillion (USD46.29 billion), while the total external debt is N56.02 trillion (USD42.12 billion).
This development comes amidst concerns about the country's increasing reliance on external borrowing. In the past year, the government has secured a total of $4.95 billion in loans from the World Bank to finance various projects across the power, education, and renewable energy sectors.
Furthermore, the government is currently awaiting approval for an additional $4.4 billion in loans from the World Bank and the Africa Development Bank over the next year.
These funds are earmarked for economic stabilization reforms, resource mobilization reforms, and other key development initiatives.
The rising public debt has raised worries about the country's ability to manage its debt servicing costs, particularly in light of the naira's devaluation.
As Nigeria navigates these financial challenges, the government's approach to borrowing and debt management will be closely scrutinized by stakeholders and the international community.
