Nigeria’s public debt stock hit N134.3 trillion ($91.3 billion) by the end of the second quarter (Q2) of 2024.
The increase, according to documents from the Ministry of Finance, is mainly driven by the devaluation of the naira and general foreign exchange volatility.
The figure also represents an increase of 10.35 per cent from the N121.7 trillion ($91.5 billion) recorded in the first quarter of the year.
The document indicated that the dollar amount of debt was roughly the same and that while the total debt grew in naira terms, the dollar equivalent of the debt remained relatively stable, underlining the impact of currency movements on debt valuation.
Domestic debt continued to dominate the public debt landscape in the review period, accounting for 53 per cent of the total, N71.2 trillion ($48.4 billion), while external debt made up 47 per cent, equivalent to N63.1 trillion ($42.9 billion).
It further showed that there is a rising trend in the country’s debt-to-GDP ratio, which continues to escalate to over 50 per cent, raising concerns over fiscal sustainability.
Meanwhile, FGN Bonds constituted a significant 78 per cent of domestic debt. 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.
Externally, multilateral loans accounted for the largest portion, making up 50.4 per cent of external debt, demonstrating Nigeria’s preference for loans from international financial institutions like the World Bank and the African Development Bank (AfDB).
Bilateral loans followed with a 13.7 per cent share, while commercial loans comprised 35.9 per cent of the total external debt.