By Jemimah Wellington, JKNewsMedia Reporter
LEADERSHIP OF Nigeria’s finances has shifted into new territory.
Public debt surged to N144.67 trillion ($94.23 billion) by December 31, 2024, reflecting a staggering 48.58% increase from the previous year’s N97.34 trillion ($108.23 billion), according to the latest figures from the Debt Management Office (DMO).
This sharp escalation in national debt comes amid a significant increase in both external and domestic borrowing.
External debt, in particular, saw a dramatic rise of 83.89%, climbing from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) by December 2024.
This surge is largely attributed to new loans from abroad and the depreciation of the naira, which inflated the value of dollar-denominated debts. Domestic debt also saw a notable increase, rising by 25.77% to N74.38 trillion ($48.44 billion).
The Federal Government’s borrowing alone rose by 32.19%, reaching N70.41 trillion ($45.86 billion).
The rapid escalation of Nigeria’s debt burden has triggered alarm among experts, particularly regarding the growing external debt.
Financial analysts warn that the country’s finances are becoming increasingly vulnerable to fluctuations in the exchange rate, with servicing this debt poised to become more challenging as the naira continues to weaken.
To safeguard the nation’s economic future, experts call for the government to adopt more strategic debt management practices.
They also emphasise the need for diversifying revenue sources through sustained economic growth and enhanced tax collection to reduce the nation’s reliance on borrowing.
With external debt now accounting for 48.59% of Nigeria’s total public debt, DMO posits that the government faces an urgent need to strike a balance between borrowing and implementing sustainable financial strategies to ensure long-term economic stability.
