Nigeria’s public debt has risen to N134.3 trillion as of June 2024, reflecting a 10.35% increase from the N121.7 trillion recorded in the first quarter of the year. This sharp rise comes at a time when the country is grappling with significant infrastructure deficits, including poor road networks.
According to a report from the Ministry of Finance, as cited by Nairametrics, the increase in the country’s debt stock is largely attributed to the devaluation of the naira. Exchange rate fluctuations continue to pose challenges to Nigeria’s economic stability, with the naira's depreciation playing a significant role in the rising debt burden.
The Ministry’s document explained: “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 remained roughly the same.”
In June 2024, the Debt Management Office had already disclosed that Nigeria’s total foreign and domestic debt stood at N121.67 trillion. The recent spike in the country’s debt further fuels concerns among economic analysts, who warn that the rising debt profile could have dire consequences for Africa's most populous nation.
As Nigeria continues to struggle with inadequate infrastructure, citizens across the country are feeling the impact of deteriorating road networks and other essential services. Economic experts have sounded the alarm, cautioning that the country's swelling debt, if unchecked, could worsen its economic challenges and hinder development efforts.
The government's focus on addressing these infrastructural gaps while managing its growing debt load remains a pressing issue for the Tinubu administration.
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