The Debt Management Office (DMO) has revealed an increase in Nigeria’s public debt by N24.33 trillion in three months, summing the nation’s total debt to N121.67 trillion (approximately $91.46 billion) as of March 31, 2024.

A statement released by the DMO showed that the nation’s public debt includes the domestic and external debts of the federal government of Nigeria (FGN), the thirty-six state governments, and the Federal Capital Territory (FCT).

According to the DMO, N24.33 trillion is a huge increase in just three months from the comparative figure of December 31, 2023, which was N97.34 trillion (USD108.23 billion).

The DMO disclosed that the increase is as a result of naira devaluation which led to a reduction of the total debt in dollar terms.

The management also noted that a large part of Nigeria’s debt were caused by the domestic debt, as while the total external debt summed up to N56.02 trillion (USD 42.12 billion), the domestic debt summed up to a total of N65.65 trillion (USD 46.29 billion), which means that 53.96% of the total debt are owed to domestic creditors.

The statement read, “Nigeria’s Total Public Debt, comprising the Total Domestic and External Debts of the Federal Government of Nigeria (FGN), the thirty-six (36) state governments, and the Federal Capital Territory (FCT), stood at N121.67 trillion (USD91.46 billion) as at March 31, 2024. The comparative figure for December 31, 2023, was N97.34 trillion (USD108.23 billion). Total Domestic Debt was N65.65 trillion (USD 46.29 billion) while Total External Debt was N56.02 trillion (USD 42.12 billion).”

Meanwhile, the DMO also revealed that irrespective of naira exchange rate movements in the first quarter of 2024, the new domestic borrowing by the federal government to partly finance the 2024 budget deficit and securitisation of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria, caused the domestic debt to increase from N59.12 trillion on December 31, 2023, to N65.65 trillion on March 31, 2024.

The statement added, “Excluding Naira exchange rate movements in Q1 2024, only the Domestic Debt component of Total Public Debt grew from N59.12 trillion on December 31, 2023, to N65.65 trillion on March 31, 2024. The increase was from new borrowing to part-finance the 2024 Budget deficit and securitization of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria.”