Nigeria’s public debt has seen a major review, with Capita’s debt outstanding at 63%, according to an analysis of data released by the Debt Management Office (DMO). This adds to concerns about the country’s debt crisis amid a weak currency and financial system.
President Ahmed Musabo just assumed office in June 2023, Nigeria’s total debt stood at ₦87.3 trillion. However, by September 2024, the population had grown to ₦142.3 trillion – a strong increase of ₦55 trillion on the cliff.
On the skyocket of loans
Using Nigeria’s population of 227 million, debt per capita stood at ₦383,000 in June 2023. By September 2023, this figure was achieved by 6244,527 people each. To put this in perspective, a Nigerian loan now equates to nine years of ₦70,000.
Loan loss and borrowing
Total debt consists of foreign debt and ₦73.4 trillion domestic debt. A significant portion- ₦ 69.2 Trillion – is characterized by Federal subordinated liabilities, while state governments have an additional ₦ 4.2 trillion in debt.
A detailed analysis shows that between July and Septer 2024 alone, the Federal government borrowed an additional ₦.
Naira Farture is working on loans
Nigeria’s dependence on external debt has been hampered by the devaluation of the Naira. In June 2024, the exchange rate stopped at ₦1,470.19 to the dollar. By September 2024, its value had weakened to ₦1,601, increasing its cost of issuing foreign loans.
Quarterly comparisons slightly increase debt
In June 2024, Nigeria’s debt stood at ₦134.2 trillion, including ₦trillion foreign debt and ₦71.2thillion domestic debt. By September 2024, both had increased by 5.97% to ₦142.3 trillion.
This decorator shows the problems that the world faces and raises questions about lending minutes and exchange rates.
Warnings
Economists warn that if Nigeria’s debt is not written off, the country could face any problem. He emphasizes the importance of changing old assets, diversification of income, and restructuring loans to avoid financial ruin.
As Nigeria grapples with its debt, those who have caught it are urging the team to introduce bold measures to reduce the country’s economy.
