Nigeria’s total public debt has surged to ₦121.67 trillion ($91.46 billion), according to the Debt Management Office (DMO). As of March 31, 2024, the country’s domestic and external debts have reached this new high, reflecting a significant increase from ₦97.34 trillion ($108.23 billion) in December 2023. This rise of ₦24.33 trillion within three months highlights the rapid escalation of Nigeria’s borrowing.

The total debt includes borrowings by the Federal Government, the 36 state governments, and the Federal Capital Territory (FCT). Domestic debt stands at ₦65.65 trillion ($46.29 billion), while external debt amounts to ₦56.02 trillion ($42.12 billion). The DMO attributed the debt growth to new borrowings aimed at part-financing the 2024 Budget deficit and the securitization of a portion of the ₦7.3 trillion Ways and Means Advances from the Central Bank of Nigeria.

The DMO stated, “The increase was due to new borrowing to part-finance the 2024 Budget deficit and securitization of a portion of the ₦7.3 trillion Ways and Means Advances at the Central Bank of Nigeria.”

While borrowing is expected to continue as provided in the 2024 Appropriation Act, improvements in government revenue are anticipated to enhance debt sustainability. On May 29, 2024, President Bola Tinubu announced his intention to present the 2024 Supplementary Budget to the National Assembly (NASS).

President Tinubu had signed the ₦28.7 trillion 2024 Appropriation Bill into law on January 1, 2024. This budget was ₦1.2 trillion higher than the initial proposal submitted to the NASS on November 29, 2023. Dubbed the “Budget of Renewed Hope,” it pegged the oil price at $77.96 per barrel with a daily production estimate of 1.78 million barrels. The naira was set at ₦750/$1, but by February, it had depreciated to nearly ₦2,000/$1. Currently, the naira fluctuates around ₦1500/$1 due to significant instability since the unification of the foreign exchange windows.