Nigeria’s total public debt rose to ₦149.39 trillion as of March 31, 2025, marking a year-on-year increase of ₦27.72 trillion or 22.8 per cent compared to the ₦121.67 trillion recorded in the corresponding period of 2024.
The figure, released by the Debt Management Office on Friday, also reflects a quarter-on-quarter increase of ₦4.72 trillion or 3.3 per cent from ₦144.67 trillion as at December 31, 2024.
The persistent rise in debt stock is attributed to new borrowings by the Federal Government and the depreciation of the naira, which inflated the local currency value of external loans.
This surge comes against a backdrop of persistent fiscal pressures and continued reliance on both domestic and foreign borrowing to fund public expenditure.
External debt stood at ₦70.63 trillion ($45.98 billion) at the end of the first quarter of 2025, compared to ₦56.02 trillion ($42.12 billion) in the same period of 2024.
This translates to a year-on-year increase of ₦14.61 trillion or 26.1 per cent. In quarter-on-quarter terms, it rose slightly from ₦70.29 trillion in December 2024, a marginal increase of ₦344 billion or 0.5 per cent.
While the actual increase in dollar terms was only $3.86 billion year-on-year, the depreciation of the naira significantly amplified the growth when converted to local currency.
For context, the Central Bank of Nigeria used an exchange rate of ₦1,330.26/$1 to convert external debt in Q1 2024.
Although the exact rate used for Q1 2025 was not disclosed in the DMO statement, the higher naira value suggests a weaker exchange rate was applied, reflecting currency volatility.
Nigeria’s external borrowings include loans from multilateral lenders such as the World Bank and African Development Bank, bilateral arrangements, and commercial debt instruments, including Eurobonds.
The increase in debt servicing costs, driven by naira depreciation, has raised concerns about the strain on government finances, especially as the country struggles to improve foreign exchange liquidity and stabilise the currency.
The PUNCH