Nigeria’s Public Debt Rises To N134.3trn In Q2 2024 – Report

October 24, (THEWILL) – Nigeria’s public debt has increased to N134.3 trillion ($91.3 billion) in the second quarter of 2024, representing a 10.35% increase from the N121.7 trillion ($91.5 billion) recorded in the first quarter, Nairametrics reported, citing a document exclusively obtained from the Federal Ministry of Finance.

“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”, it said.

According to the report, domestic debt accounted for 53% of the total debt, amounting to N71.2 trillion ($48.4 billion), while external debt made up 47%, equivalent to N63.1 trillion ($42.9 billion).

The majority of domestic debt, 78%, is in the form of FGN Bonds, indicating the government’s reliance on local bond markets for financing. Other instruments in the domestic market include Nigerian Treasury Bills, Savings Bonds, Sukuk, Promissory Notes, and Green Bonds, reflecting diverse borrowing options for public financing.

On the external front, multilateral loans accounted for the largest portion, making up 50.4% of external debt, followed by bilateral loans at 13.7%, and commercial loans at 35.9%. These figures demonstrate the balance between concessional financing and market-based borrowing, allowing Nigeria to manage debt obligations while navigating global financial markets.

Nigeria’s debt servicing payments surged by 69% in the first half of 2024, reaching N6.04 trillion, up from N3.58 trillion in the same period of 2023. This sharp rise in debt service obligations, likely driven by naira devaluation for foreign debt repayments, reflects the growing burden on the Federal Government as debt repayment consumes a significant portion of its financial resources.