Overview
- Nigeria’s total public debt reached N121.67 trillion (approximately $91.46 billion) as of March 31, 2024.
- This figure encompasses both domestic and external debts of the Federal Government of Nigeria (FGN), state governments, and the Federal Capital Territory (FCT).
Key Points
- Rapid Increase: Within just three months, the total debt surged by N24.33 trillion (24.99%).
- Naira Devaluation Impact: The increase is largely attributed to naira devaluation, which reduced the total debt in dollar terms by $16.77 billion (18.34%).
Breakdown of Debt Components
- Domestic Debt: N65.65 trillion (approximately $46.29 billion), constituting 53.96% of the total debt.
- External Debt: N56.02 trillion (approximately $42.12 billion).
Drivers of Domestic Debt Growth
- Borrowing for Budget Deficit: New borrowing was undertaken to part-finance the 2024 Budget deficit.
- Securitization of Advances: A portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria (CBN) contributed to the rise.
Conclusion
- Nigeria faces significant debt challenges, necessitating careful management and fiscal policies.