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Nigeria’s public debt stock has reached a new high of N97.34 trillion (approximately $108.23 billion) in the fourth quarter (Q4) of 2023, according to a report by the National Bureau of Statistics (NBS).
This represents a significant increase of 10.73% compared to the N87.91 trillion ($114.35 billion) reported in Q3 2023.
The breakdown of the debt reveals that domestic debt accounted for N59.12 trillion ($65.73 billion), while external debt stood at N38.22 trillion ($42.50 billion) at the end of Q4. This translates to a domestic debt share of 60.74% and an external debt share of 39.26%.
“However, the share of external debt to total public debt stood at 39.26 per cent in Q4 2023, while domestic debt was recorded at 60.74 per cent.”
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In a breakdown by states, the bureau said that Lagos State recorded the highest domestic debt of N1.05 trillion in Q4 2023, followed by Delta with N373.41 billion.
The report showed Jigawa recorded the lowest domestic debt at N42.76 billion, followed by Kebbi at N60.69 billion.
In addition, it stated that Lagos state recorded the highest external debt with 1.24 billion dollars , followed by Kaduna state with 587.07 million dollars.
“Borno recorded the lowest external debt with 20.49 million dollars , followed by Yobe with 21.49 million dollars,” the NBS stated.
Analysts point out that while the increase in domestic debt is concerning, it might reflect the government’s financing efforts through the issuance of bonds and treasury bills to fund budget deficits.
However, the implication is that domestic interest rate payments could put a strain on government finances in the future
The sustainability of Nigeria’s debt burden remains a topic of debate among economists. #
Some experts have expressed concerns about the country’s ability to service its debt obligations in the long term, particularly if economic growth stagnates.
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