In spite of mounting concerns over the huge level of the country’s public debt, and the severe impact of rising cost of debt servicing on the economy, the Federal Government increased borrowing from domestic investors to N10.85 trillion in the first four months of the year.
Nigeria’s total public debt rose by 48.6 per cent to 144.66 trillion Naira in 2024, from 97.34 trillion Naira in 2023, with the Federal Government accounting for 95 per cent or 137.28 trillion Naira.
As a result, the FG spent 150 per cent of its total revenue in 2024 on debt service, representing a sharp increase from 65 per cent in 2023.
Data by the Debt Management Office, DMO, revealed that domestic debt service cost rose by 12 per cent, Year-on-Year, YoY, to 5.9 trillion Naira in 2024 while external debt service cost rose YoY by 33 per cent to 4.7 billion Dollars from 3.5 billion Dollars in 2023.
This also led to deterioration in the country’s Debt-to-GDP ratio to 52.9 per cent in 2024 from 48.7 per cent in 2023. The Debt-to-GDP ratio is a key measure of Debt Sustainability, which refers to the economy’s capacity to manage its debt obligations without defaulting or needing external assistance.
