A new report from the National Bureau of Statistics (NBS) has revealed that Nigeria’s national debt continues to grow at an alarming rate, with the average debt owed by each citizen now standing at N619,501. According to the second-quarter debt data released by the Debt Management Office (DMO), Nigeria’s total public debt reached N134.297 trillion as of June 2024, marking a significant rise from previous figures.
The NBS, which estimates the country’s population at 216.7 million, calculated that this translates into a per capita debt of N619,501, meaning that, on average, every Nigerian would have to contribute this amount to settle the national debt.
The Debt Management Office provided a breakdown of the figures, explaining that the total public debt encompasses both external and domestic obligations across the Federal Government of Nigeria (FGN), the 36 states, and the Federal Capital Territory (FCT). The DMO stated: “The total Public debt is N134tn. This is for public debt stock – external and domestic debt of the FGN (Federal Government of Nigeria), states, and FCT (Federal Capital Territory) as of June 30, 2024.”
The debt profile indicates that Nigeria’s domestic debt stands at N71.2 trillion, while the external debt is pegged at N63 trillion. Further analysis shows that the federal government holds the bulk of the external debt, owing N55.8 trillion, while the states collectively owe N7.1 trillion externally. On the domestic front, the federal government owes N66.9 trillion, while the states have a combined domestic debt of N4.2 trillion.
The newly released debt data also highlights a worrying upward trend. Nigeria’s total public debt has surged by N13 trillion, up from N121 trillion recorded as of March 2024, reflecting a sharp increase in borrowing over the past few months.
This rapid accumulation of debt comes amidst growing concerns about the sustainability of Nigeria’s borrowing practices. Critics have long called for a reduction in the country’s reliance on loans, particularly as public debt continues to spiral upward. The current figures have sparked renewed debates over Nigeria’s fiscal health, with many advocating for more effective measures to curb excessive borrowing and boost domestic revenue generation.
As the country grapples with these mounting financial challenges, the rising debt burden underscores the urgent need for fiscal reforms and a more sustainable approach to economic management.
