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•Adds N24.33trn in 3 months
The Debt Management Office (DMO) of Nigeria has announced a significant increase in the nation’s total public debt, which has reached N121.67 trillion (approximately $91.46 billion) as of March 31, 2024. This figure includes the combined domestic and external debts of the Federal Government of Nigeria (FGN), the thirty-six state governments, and the Federal Capital Territory (FCT).
As of December 31, 2023, the total public debt stood at N97.34 trillion (approximately $108.23 billion). This represents a substantial increase of N24.33 trillion or 24.99% within just three months.
The surge in debt is primarily attributed to the devaluation of the naira, which has resulted in a reduction of the debt when converted to dollar terms. However, the DMO statement also emphasized that excluding the impact of naira exchange rate movements in the first quarter of 2024, the domestic debt saw a marked increase. Specifically, the domestic debt rose from N59.12 trillion at the end of December 2023 to N65.65 trillion by March 31, 2024, an increase of N6.53 trillion or 11.05%.
This rise in domestic debt is largely due to new borrowing undertaken to part-finance the 2024 budget deficit and the securitization of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria (CBN).
The DMO’s Director General, Patience Oniha, earlier stated that the federal government raised N4.5 trillion out of the N6 trillion target in the 2024 budget. She noted that domestic securities remain a major source of federal government spending, highlighting the ongoing reliance on internal financial instruments to meet fiscal needs.
The breakdown of the total debt as of March 31, 2024, shows that the domestic debt component was N65.65 trillion (approximately $46.29 billion), while the external debt component amounted to N56.02 trillion (approximately $42.12 billion).
This comprehensive view underscores the multifaceted drivers behind Nigeria’s debt dynamics, encompassing currency devaluation, budgetary financing needs, and strategic financial management practices within the central banking system.
