Nigeria has experienced a dramatic N57.3 trillion increase in its public debt within the first 18 months of President Bola Tinubu's administration, according to recent Debt Management Office data.

Total public debt rose from N87.38 trillion in June 2023 to N144.67 trillion by December 2024, representing a 65.6% surge since Tinubu took office on May 29, 2023.

Exchange Rate Impact

While the naira value of debt has skyrocketed, the total debt in dollar terms actually decreased by 17%, from $113.42 billion to $94.23 billion. This apparent reduction stems from the naira's steep depreciation, falling from N770.38 to approximately N1,535 per dollar during this period.

Debt Composition Changes

External debt grew significantly, rising from N33.25 trillion to N70.29 trillion, while domestic debt increased from N54.13 trillion to N74.38 trillion. This shift has altered the structural balance of Nigeria's debt portfolio, with external debt now accounting for nearly 49% of total debt, up from 38% in June 2023.

Federal Government Borrowing

The Federal Government remains responsible for over 90% of the country's total debt, with its obligations climbing from N78.21 trillion to N133.33 trillion. Domestic debt alone surged by N22.1 trillion (45.7%), reaching N70.41 trillion by December 2024.

A significant portion of this increase resulted from converting the N22.7 trillion Ways and Means Advances from the Central Bank into tradable bonds—a move approved shortly after Tinubu took office.

Changing Debt Instruments

FGN Bonds remain the dominant instrument in the domestic debt portfolio, standing at N55.44 trillion and accounting for 78.7% of domestic debt. Treasury Bills nearly tripled to N12.35 trillion, indicating increased reliance on short-term borrowing.

External Debt Growth

In dollar terms, external debt grew moderately from $43.16 billion to $45.78 billion, a 6.1% increase. Multilateral institutions remain the largest source of external funding, providing nearly 49% of the total. The World Bank's International Development Association increased its exposure from $14.03 billion to $16.56 billion.