Nigeria’s public debt has seen a dramatic surge, with the per capita debt burden rising by 63%, according to a review of data released by the Debt Management Office (DMO). This increase underscores growing concerns about the nation’s debt sustainability amid a weak revenue base and currency devaluation.
When President Bola Ahmed Tinubu assumed office in June 2023, Nigeria’s total debt stood at ₦87.3 trillion. However, by September 2024, the figure had escalated to ₦142.3 trillion—a staggering increase of ₦55 trillion in just over a year.
Per Capita Debt Skyrockets
Using Nigeria’s population estimate of 227 million (2023 World Bank data), the debt per capita stood at ₦383,000 in June 2023. By September 2024, this figure had surged to ₦624,527 per person. To put this into perspective, the debt per Nigerian now equals nine times the country’s minimum wage of ₦70,000.
Debt Breakdown and Rising Borrowing
The total debt comprises ₦68.8 trillion in external debt and ₦73.4 trillion in domestic debt. A significant portion—₦69.2 trillion—is attributed to the federal government’s domestic obligations, while states and the Federal Capital Territory owe an additional ₦4.2 trillion.
A detailed analysis shows that between July and September 2024 alone, the federal government borrowed an additional ₦2.2 trillion domestically and ₦5.8 trillion externally.
Naira Devaluation Worsens Debt Profile
Nigeria’s reliance on foreign loans has been further strained by the depreciation of the naira. In June 2024, the exchange rate stood at ₦1,470.19 to a dollar. By September 2024, the rate had devalued to ₦1,601, significantly increasing the cost of servicing external debts.
Quarterly Comparison Highlights Debt Growth
In June 2024, Nigeria’s debt stock stood at ₦134.2 trillion, comprising ₦63 trillion in external debt and ₦71.2 trillion in domestic debt. By September 2024, the total had risen by 5.97% to ₦142.3 trillion.
This debt surge reflects the country’s deepening financial challenges and raises questions about the sustainability of continued borrowing amid exchange rate volatility and poor revenue generation.
Expert Warnings
Economists warn that if Nigeria’s debt trajectory is not addressed, the country could face a full-blown debt crisis. They highlight the urgent need for fiscal reforms, revenue diversification, and debt restructuring to prevent further economic deterioration.
As Nigeria grapples with its mounting debt, stakeholders are urging the Tinubu administration to implement bold measures to stabilize the economy and safeguard the country’s financial future.