Nigeria’s total public debt stock rose significantly by N12.6 trillion in the second quarter of 2024, reaching N134.3 trillion ($91.3 billion), up from N121.7 trillion ($91.5 billion) in the first quarter.
This 10.35% rise is largely attributed to the devaluation of the naira. Although the dollar-denominated debt amount appeared stable, Nigeria’s debt surged in naira terms.
Domestic debt saw an 8.45% increase from N65.65 trillion in Q1 to N71.2 trillion in Q2. External debt also rose by $780 million, going from $42.12 billion to $42.9 billion within the same period.
Key components of the domestic debt include FGN Bonds, representing 78% of the domestic portfolio, along with Treasury Bills, Savings Bonds, Sukuk, Promissory Notes, and Green Bonds. In external debt, 50.4% comes from multilateral loans with entities like the World Bank and the African Development Bank, 13.7% from bilateral loans, and 35.9% from commercial loans.
At a recent investor meeting in Washington, D.C., Finance Minister Wale Edun highlighted that investors oversubscribed Nigeria’s $500 million domestic bond, committing over $900 million.
The country’s debt-to-GDP ratio has now surpassed 50%, reflecting the increasing reliance on both domestic and international financing sources.
CREDIT: Allneeds, THE PUNCH
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