Nigeria's national debt has reached an alarming rate, with the country's public debt stock standing at N97.34 trillion as of Q4 2023 ¹. This translates to approximately N620,000 of debt per Nigerian citizen, a staggering figure that raises concerns about the country's economic stability.
*Rising Debt: A Cause for Concern*
The National Bureau of Statistics reports that Nigeria's public debt stock increased by 75.27% on a quarter-on-quarter basis, from N49.85 trillion in Q1 2023 to N87.38 trillion in Q2 2023 ². This rapid growth in debt is attributed to the government's reliance on borrowing to finance its activities.
*Breaking Down Nigeria's Debt*
Nigeria's debt is comprised of external and domestic debt. As of Q2 2023, total external debt stood at N33.25 trillion, while total domestic debt was N54.13 trillion ². The share of external debt to total public debt was 38.05%, while domestic debt accounted for 61.95% ².
*Regional Debt Disparities*
A closer look at the data reveals significant disparities in debt levels across Nigeria's states. Lagos State recorded the highest domestic debt, with N996.44 billion, followed by Delta State with N465.40 billion ². In contrast, Jigawa State had the lowest domestic debt, with N43.13 billion ².
*Expert Insights and Warnings*
The African Sovereign Debt Justice Network (AfSDJN) has expressed concerns about Nigeria's rising debt, emphasizing the need for responsible borrowing practices ³. The network recommends that the government adopt more proactive ways of raising revenue to reduce borrowing activities, which increase Nigeria's debt servicing burden ³.
*The Way Forward*
To address the country's debt crisis, experts advocate for:
- *Judicious debt management*: The government must prioritize efficient use of borrowed funds and ensure transparency in debt management ³.
- *Diversified revenue streams*: Nigeria needs to explore alternative revenue sources to reduce its reliance on borrowing ³.
- *Economic reforms*: Implementing policies to stimulate economic growth and reduce inflation can help alleviate the debt burden ³.
As Nigeria's national debt continues to soar, it is essential for the government to take proactive measures to address the crisis and ensure a sustainable economic future for its citizens.