The nation’s public debt profile increased to N97.341 trillion, equivalent to $108.229 billion as of December 31, 2023.
The Debt Management Office (DMO) in its recent report on the Nigeria debt released over the weekend showed that the figure comprises both domestic and external debt borrowed by the Federal Government of Nigeria (FGN), the 36 states, and the Federal Capital Territory (FCT).
The data reflects a substantial increase of N9.43 trillion compared to N87.91 trillion recorded at the end of third quarter ending September 30, 2023.
The rise was primarily attributed to fresh domestic borrowing by the FGN, aimed at partially bridging the deficit outlined in the 2024 Appropriation Act, along with inflows from multilateral and bilateral lenders.
The report showed that out of the total debt stock, domestic debt accounted for a total of N59.12 trillion, representing 61 per cent of the aggregate, while external debt stood at N38.22 trillion, comprising the remaining 39 per cent.
However, Nigeria’s external debt structure displayed a notable tilt towards loans from multilateral and bilateral sources, constituting 49.77 per cent and 14.02 per cent respectively, amounting to a combined 63.79 per cent.
These loans, predominantly concessional and semi-concessional, form a significant portion of the nation’s indebtedness.
In response to mounting concerns, the DMO emphasised its commitment to upholding prudent debt management practices.
Additionally, it acknowledged the fiscal authorities’ recent endeavours to bolster revenue generation, expressing optimism that such initiatives would bolster debt sustainability efforts.
As Nigeria grappling with soaring debt levels, financial experts are closely monitoring the situation, saying that it is necessary to implement effective measures to mitigate risks and ensure fiscal stability in the long run
