Nigeria’s public debt stock surged by N12.6tn in the second quarter of 2024, reaching N134.3tn ($91.3bn), largely driven by the naira’s devaluation, according to a report by The PUNCH. The increase marks a 10.35% jump from the N121.7tn recorded in Q1 2024, despite the dollar equivalent remaining relatively stable due to exchange rate factors.
An official document presented during the recent World Bank/IMF annual meetings revealed that domestic debt accounted for 53% of the debt portfolio at N71.2tn ($48.4bn), while external debt represented 47% at N63.1tn ($42.9bn). Notably, FGN Bonds made up 78% of domestic debt, underscoring the government’s reliance on local bond markets for funding. Multilateral loans comprised 50.4% of the external debt, with bilateral and commercial loans making up 13.7% and 35.9%, respectively.
Finance Minister Wale Edun announced the oversubscription of Nigeria’s $500m domestic bond, which raised over $900m from investors, despite initial IMF reservations. Edun emphasized the value of IMF guidance while underscoring Nigeria's autonomous policy decisions, remarking, “These institutions can provide value, but we don’t always have to take their advice.”
