Nigeria’s total public debt stock rose to N142.3 trillion as of September 30, 2024.
This is according to the latest data from the Debt Management Office (DMO).
The figure represents an increase of 5.97 per cent (N8.02 trillion) compared to N134.3 trillion in June 2024.
The increase is not unconnected with the effects of rising domestic borrowing and the impact of exchange rate depreciation on external debt when converted to naira terms.
Data from the DMO showed that Nigeria’s external debt in dollar terms grew marginally by 0.29 per cent, from $42.90 billion in June to $43.03 billion in September.
However, the naira equivalent of external debt surged significantly by 9.22 per cent, rising from N63.07 trillion to N68.89 trillion during the same period.
The increase was largely driven by the naira’s depreciation against the US dollar, as the exchange rate weakened from N1,470.19/$ in June to N1,601.03/$ by the end of September.
Domestic debt recorded mixed performance, declining by 5.34 per cent in dollar terms from $48.45 billion in June to $45.87 billion in September. In naira terms, however, domestic debt increased by 3.10 per cent, from N71.22 trillion to N73.43 trillion.
The Federal Government accounted for the bulk of domestic debt, which rose from N66.96 trillion in June to N69.22 trillion by September.
Conversely, domestic debt owed by states and the Federal Capital Territory (FCT) declined slightly, from N4.27 trillion to N4.21 trillion.
Also, the Federal Government bonds remained the largest component of domestic debt, increasing by 4.47 per cent to N54.65 trillion in September, up from N52.32 trillion in June, representing 78.95 per cent of the total domestic debt stock, an increase from 78.13 per cent in the previous quarter.
The issuance of bonds in naira terms accounted for the majority of this growth. Also, Nigeria introduced its first domestic dollar-denominated bond, adding N1.47 trillion to the debt stock.
