Nigeria’s public debt has reached an all-time high of N134.3 trillion, as of the end of the second quarter of 2024.
This represents a sharp increase compared to the N121.7 trillion recorded just a few months earlier in the first quarter.
The main reason for the increase is the devaluation of the country’s currency, the naira. According to a report from the Ministry of Finance, the dollar amount of the debt has not changed much, but because the naira has lost value, the debt appears larger when counted in local currency.
“In Q2 2024, the debt stock grew in naira terms to N134.3 trillion ($91.3 billion) from N121.7 trillion ($91.5 billion) in Q1 2024, driven mainly by exchange rate devaluation. The dollar amount of debt was roughly the same,” the report said.
Nigeria’s debt is split between domestic and external loans. About 53% of the debt is local, meaning it is owed to creditors inside Nigeria. This local debt is worth N71.2 trillion. The other 47%, or N63.1 trillion, is foreign debt owed to other countries and international financial institutions.
The report also shows that the country’s debt-to-GDP ratio, which compares the total debt to the size of the economy, has risen above 50%.