FX Devaluation Pushes Nigeria’s Public Debt To N134.3 Trillion In Q2 2024

Nigeria’s public debt stock surged to N134.3 trillion ($91.3 billion) by the end of the second quarter of 2024 mainly driven by the devaluation of the naira.

This represents an increase of 10.35% from the N121.7 trillion ($91.5 billion) recorded in the first quarter and announced by the Debt Management Office (DMO).

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This is according to an official document from the Ministry of Finance.

The document read: “In Q2 2024, the debt stock grew in naira terms to N134.3 trillion ($91.3 billion) from N121.7 trillion ($91.5 billion) in Q1 2024, driven mainly by exchange rate devaluation. The dollar amount of debt was roughly the same.”

Notably, while the total debt grew in naira terms, the dollar equivalent of the debt remained relatively stable, underlining the impact of currency movements on debt valuation.

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Domestic debt accounted for 53% of the total, amounting to N71.2 trillion ($48.4 billion), while external debt made up 47%, equivalent to N63.1 trillion ($42.9 billion).

The data further shows a rising trend in the country’s debt-to-GDP ratio, which continues to escalate to over 50%, raising concerns over fiscal sustainability.