Nigeria's Debt Skyrockets to N144.67 Trillion in One Year, Triggers Economic Concerns

The debt profile of Nigeria has reached an alarming level, as the country's total public debt has surged to a staggering N144.67 trillion as of December 2024, according to the latest figures released by the Debt Management Office (DMO).

This marks a sharp 48.58 percent increase from the N97.34 trillion recorded at the end of December 2023-an astronomical N47.32 trillion rise in just 12 months.

The DMO report further indicates that Nigeria's debt burden is rising at a worrisome pace. On a quarter-on-quarter basis, the debt increased by 1.65 percent from N142.32 trillion in September 2024. The increase is largely attributed to continuous borrowing by both federal and state governments, both domestically and externally.

A deeper breakdown shows that external debt skyrocketed by a jaw-dropping 83.89 percent within the year-from N38.22 trillion in December 2023 to N70.29 trillion in December 2024. The domestic debt stock also rose significantly by 25.77 percent, standing at N74.38 trillion in December 2024 compared to N59.12 trillion a year earlier.

The federal government alone accounted for N62.92 trillion ($40.98 billion) in external debt, while the states and Federal Capital Territory (FCT) are responsible for N7.37 trillion ($4.80 billion). Similarly, in domestic debt, the federal government owes N70.41 trillion ($45.86 billion), with states and FCT holding N3.97 trillion ($2.58 billion).

The report has sparked serious concerns among financial analysts and economists. One of the country's leading economic voices, Dr. Muda Yusuf, who is the Chief Executive Officer of the Centre for Promotion of Private Enterprises (CPPE), expressed deep worry over the rising debt.

Dr. Yusuf questioned why Nigeria's debt continues to balloon despite glaring infrastructure deficits and widespread economic hardship. He warned that such a trend could threaten long-term economic stability and put future generations under unbearable fiscal pressure.

With the growing debt now casting a shadow over Nigeria's economic future, calls are intensifying for greater fiscal discipline, transparency in loan utilization, and a more aggressive push for revenue generation through productive sectors of the economy.