Nigeria’s public debt has surged to unprecedented levels, reaching N142.3 trillion as of September 2024, up from N87.3 trillion in June 2023, according to data from the Debt Management Office. This sharp increase represents a 63% rise in the debt burden per citizen, raising serious concerns about the nation’s financial sustainability.
With Nigeria’s population estimated at 227 million by the World Bank in 2023, the debt per capita now stands at N624,527, up from N383,000 just over a year ago. This figure is more than nine times the country’s minimum wage of N70,000, highlighting the growing pressure on citizens amid economic challenges.
The surge in debt is attributed primarily to the depreciation of the naira, which has significantly increased the cost of servicing external debt. By September 2024, Nigeria’s external debt stood at N68.8 trillion, while domestic debt reached N73.4 trillion. The federal government accounts for the lion’s share, with N69.2 trillion in domestic debt alone, while state governments and the Federal Capital Territory owe N4.2 trillion.
Between July and September 2024, the federal government borrowed an additional N2.2 trillion domestically and N5.8 trillion externally. The naira’s exchange rate, which stood at N1,470.19 to the dollar in June 2024, depreciated further to N1,601 by September, compounding the country’s external debt obligations.
This rapid debt accumulation has sparked warnings from economic experts, who caution that the country’s weak revenue generation and exchange rate volatility could trigger a full-blown debt crisis.
As of June 2024, Nigeria’s total debt stood at N134.2 trillion, but within three months, it ballooned by over N8 trillion. The mounting debt profile underscores the need for urgent fiscal reforms to address the country’s deepening economic challenges.
The growing reliance on loans raises questions about the sustainability of Nigeria’s debt strategy and its long-term impact on the economy and the livelihoods of millions of Nigerians.
