Nigeria’s total public debt surged to ₦142.3 trillion as of September 30, 2024, reflecting a 5.97% increase from the ₦134.3 trillion recorded in June.
This significant rise is largely attributed to the depreciation of the naira, which has magnified the cost of external obligations in local currency terms, according to data released by the Debt Management Office (DMO). 
The DMO report revealed that external debt in dollar terms rose slightly by 0.29%, from $42.90 billion in June to $43.03 billion in September.
However, when converted to naira, external debt increased sharply by 9.22%, rising from ₦63.07 trillion to ₦68.89 trillion, driven by the exchange rate weakening from ₦1,470.19/$ to ₦1,601.03/$ within the same period.
Domestic debt also showed a complex trend, reducing by 5.34% in dollar terms but growing by 3.10% in naira terms, rising from ₦71.22 trillion in June to ₦73.43 trillion in September.
Federal Government bonds accounted for the bulk of domestic debt, climbing 4.47% to ₦54.65 trillion, or 78.95% of the domestic debt stock.
Economic experts have expressed concerns over the sustainability of the rising debt burden, especially given the increasing cost of servicing these obligations.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Public Enterprises, cautioned that Nigeria risks falling into a debt trap.
“We must be conscious of the rate at which public debt is growing, as it could create macroeconomic challenges,” Yusuf said.
He further urged the government to reduce reliance on foreign debt, noting the escalating cost due to exchange rate volatility.
Meanwhile, Finance Minister Wale Edun has outlined several reform measures aimed at addressing fiscal challenges.
Speaking during the Senate Committee on Finance’s budget defense, Edun emphasized the importance of infrastructure funding and economic reforms.
“These reforms will transform the country’s economic landscape and improve the standard of living for its citizens,” Edun stated.
As Nigeria grapples with its mounting debt, the government is focusing on long-term strategies, including the issuance of bonds and the implementation of tax reform bills, to stabilize the economy and generate sustainable revenue.
However, concerns persist that without decisive action, the rising debt levels could further strain the nation’s fiscal health.
