Nigeria’s Soaring Debt Crisis Worsens, Hits N144.67 Trillion Mark

Nigeria’s debt crisis has taken a troubling turn.

The country’s total public debt skyrocketed to ₦144.67 trillion (roughly $94.23 billion) as of December 31, 2024.

This figure includes the combined debt obligations of the federal government, all 36 states, and the Federal Capital Territory (FCT).

It’s not a small jump.

The Debt Management Office (DMO) revealed that the figure climbed from ₦97.34 trillion ($108.23 billion) recorded at the end of 2023. That’s a jaw-dropping 48.58% year-on-year increase.

What’s fueling this?

Two things.

First, Nigeria borrowed more money from foreign lenders. Second, the naira keeps losing value against the dollar. When the naira weakens, every dollar Nigeria owes becomes more expensive.

It’s a double-edged sword.

By the end of the third quarter—September 30, 2024—Nigeria’s debt already stood at ₦142.32 trillion ($88.89 billion). So, in just three months, the country added another ₦2.35 trillion in debt.

This might not shock economic experts, but it certainly worries many Nigerians.

Ordinary citizens are already bearing the brunt of inflation, job losses, and a weakened currency. Adding ballooning debt to the mix raises deep concerns about Nigeria’s future financial stability.

The DMO’s report didn’t mince words.

It acknowledged the sharp rise and attributed it mostly to currency depreciation and fresh external borrowings.

The troubling part?

This is not just a numbers game.

Behind every borrowed naira lies a responsibility. Behind every billion-dollar loan is a future repayment with interest—often in dollars. And if Nigeria keeps borrowing without a solid repayment strategy, it risks falling deeper into a debt trap.

Nigeria’s economy is already under strain.

Oil revenues, once the country’s lifeline, are no longer as reliable. Crude oil prices have dipped by over 12%, currently hovering around $65.50 per barrel. Meanwhile, global financial conditions remain tight, and interest rates are rising globally.

This creates a perfect storm for countries like Nigeria that rely heavily on external financing.

The depreciating naira is another major headache. It’s eating into government revenues and making foreign debts harder to service. Every time the naira drops, Nigeria owes more in local currency—even if the dollar amount hasn’t changed.

To put it plainly, Nigeria’s debt is swelling like bread in an oven.

But there’s no sweet smell in the air—only the sharp scent of economic uncertainty.

Financial analysts have raised concerns.

Some warn that Nigeria’s borrowing appetite is unsustainable. Others argue that the borrowed funds aren’t even being spent wisely. Infrastructure projects are often stalled. Social welfare programs barely scratch the surface. Corruption and mismanagement remain rampant.

So, what’s the endgame?

That’s the big question.

Without robust reforms, improved revenue generation, and a realistic debt repayment strategy, Nigeria could find itself begging for bailouts or facing even tougher financial conditions.

• 
  The Nation

  Shocking 60 Million Nigerians Gamble Daily: Lottery Boss Unveils Booming Industry
• 
  Security

  Oyo Horror: 7 Dead, Including 3 Kids, in Devastating Road Crash
• 
  News

  NDLEA Nabs Woman Hiding 2.5kg Drugs in Body in Shocking Bust

The Debt Management Office says it’s monitoring the situation closely.

But monitoring alone won’t cut it.

What Nigeria needs is action—bold, transparent, and immediate. It must plug revenue leakages, reduce wasteful spending, and adopt innovative methods to raise funds without piling on more debt.

Meanwhile, the average Nigerian continues to hustle.

Prices of goods keep rising. Transportation costs have doubled. Businesses are shrinking. And many are asking: “If the government keeps borrowing, where is the impact on our lives?”

Fair question.

Because numbers on paper don’t feed families. And rising debt doesn’t build trust—unless it delivers visible results.

It’s time for a new direction.

A direction where loans translate into jobs, infrastructure, and better living standards—not just endless repayments.

Until then, every new debt report will read like a warning siren, not a progress chart.