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Home Economy And Business

BREAKING: Every Nigerian ‘Owes’ Over ₦700k As Nation’s Debt Profile Rises Under Tinubu

this surge stems from rising domestic borrowing and the naira’s depreciation, which sharply inflated the naira equivalent of external debts.

by NewsOnline Nigeria
January 22, 2025
in Economy And Business, Headline
0
FG

Every Nigerian ‘owes’ over ₦700k as the nation’s debt profile rises under President Tinubu.

 

NewsOnline Nigeria reports that Nigeria’s total public debt skyrocketed to ₦142.3 trillion by the end of September 2024, marking a 5.97% increase from the ₦134.3 trillion recorded in June, according to the latest figures from the Debt Management Office (DMO).

 

This Nigeria news platform understands that this surge stems from rising domestic borrowing and the naira’s depreciation, which sharply inflated the naira equivalent of external debts.

 

External debt, measured in dollar terms, rose slightly by 0.29%, from $43.03 billion in June to $43.15 billion in September.

ALSO: Globacom CEO Ahmad Farroukh Resigns After 1 Month In Office

 

However, the naira equivalent ballooned by 9.22%, jumping from ₦63.07 trillion to ₦68.89 trillion.

 

This was attributed to the exchange rate weakening from ₦1,470.19/$ to ₦1,601.03/$ within the same period.

A customer exchanges Nigerian 1000 Naira banknotes for US dollar banknotes with a street currency dealer at a market in Lagos, Nigeria, on Monday, Sept. 25, 2023.  [Getty Images]

Domestic debt presented a mixed picture: while declining by 5.34% in dollar terms (from $48.45 billion to $45.87 billion), it rose by 3.10% in naira terms, increasing from ₦71.22 trillion to ₦73.43 trillion.

 

“The Federal Government remains the primary driver of domestic debt, rising from N66.96 trillion in June to N69.22 trillion in September,” the DMO noted.

 

Debt owed by states and the Federal Capital Territory (FCT) decreased marginally, from ₦4.27 trillion to ₦4.21 trillion.

 

With the naira’s depreciation exerting significant pressure, financial experts warn that Nigeria’s rising debt stock underscores the urgent need for fiscal reforms to stabilise the economy.

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