On January 21, 2025, the Debt Management Office (DMO) released Nigeria’s debt position as of September 30, 2024. The total debt stock rose to ₦142.3 trillion, reflecting a 5.97% increase from ₦134.3 trillion in Q2 2024.
Thank you for reading this post, don't forget to subscribe!Breaking it down, Nigeria’s foreign debt in naira terms grew by 9.22%, increasing from ₦63.07 trillion in Q2 to ₦68.89 trillion in Q3 2024. Notably, the dollar value of the foreign debt remained steady at $43 billion. On the domestic side, debt rose by 3.1%, from ₦71.22 trillion in Q2 to ₦73.43 trillion in Q3 2024. However, in dollar terms, domestic debt fell by 5.34%, from $48.45 billion to $45.87 billion.
The primary driver of this surge in debt is the naira’s devaluation, as its value dropped from ₦1,470 per dollar in June 2024 to ₦1,610 in September 2024, a 9% decline. Throughout 2024, the naira depreciated by 82%, earning it the status of one of the worst-performing currencies globally that year.
With debt servicing now exceeding 100% of government revenue, the report highlights the urgent need for stabilizing the currency to prevent further escalation of foreign debt in naira terms. It also stresses the importance of translating borrowed funds into tangible economic growth, given the country’s precarious financial position.
The DMO’s next update will reflect the $2.2 billion Eurobond secured in December 2024, potentially pushing Nigeria’s foreign debt above $45 billion and total debt stock to over ₦146 trillion.
