Nigeria’s public debt has ballooned to a record N142 trillion, fueled by sustained borrowing by the federal government and state governors. This alarming figure represents a significant increase in the country’s debt burden, sparking concerns about the nation’s fiscal sustainability and the long-term implications for economic growth and development.

Amid growing concerns over Nigeria’s continued dependence on loans, new data reviewed by SaharaReporters from the country’s recently published debt profile reveals an increasing reliance on borrowing.

The latest data shows that as of September 2024, Nigeria’s total public debt reached N142 trillion. Of this amount, external debt accounted for N68.8 trillion, while domestic debt totaled N73.4 trillion.

The data review shows that domestically, the federal government alone owes N69.2 trillion, while states and the Federal Capital Territory owe N4.2 trillion.

The data shows that the country has relied heavily on local sources for its loan portfolio.

The newly published total debt profile is more than the N134.2 trillion which Nigeria owed as of June 2024.

Total external debt of the country as of June 2024 stood at N63 billion, while domestic debt stood at 71.2 trillion.

Of this amount, the federal government’s domestic debt stood at N66.9 billion while states stood at N4.2 billion.

Data reviewed shows that between July and September, the federal government borrowed N2.2 trillion more locally and another N5.8 trillion externally.

The devaluation of naira may have worsened the country’s fate in terms of how much it owes. In June 2024, the exchange rate of the country was N1470.19 to a dollar, but by September 2024, it has moved to N1601.

This development on increased loans negates President Bola Tinubu’s promises.

In August 2023, President Tinubu promised to reduce Nigeria’s reliance on loans.

At the inauguration of the Presidential Committee on Fiscal and Tax Reforms, he admitted that debt servicing was consuming Nigeria’s ‘meagre’ resources, noting that it has put the economy in a vicious cycle of borrowing simply to service debts.

According to him, it leaves almost no scope for socio-economic development.

Despite this situation, the administration of President Tinubu has continued to rely heavily on loans, according to details published by the Debt Management Office.

As of May 29, 2023, when Tinubu came into office, the public debt profile of the country stood at N87.3 trillion. By growing to N142 trillion by September 2024 trillion means that the public debt profile of the country has grown by N54.7 trillion.