Nigeria’s public debt has exceeded the government’s debt sustainability threshold after the Federal Government borrowed 61.2% more than originally budgeted to finance a wider-than-expected fiscal deficit in 2024, according to data from the Budget Office analyzed by BusinessDay.
The report showed that total public debt rose to ₦144.67 trillion, pushing the country’s debt-to-GDP ratio to 61.22% by the end of 2024. That exceeds Nigeria’s self-imposed debt ceiling of 40% of GDP and is also above the 56% benchmark commonly used for comparable economies.
The Federal Government raised ₦12.62 trillion in fresh borrowing during the year, far above the approved borrowing plan of ₦7.83 trillion. The increased borrowing was driven by a fiscal deficit that widened to ₦13.51 trillion, after government revenue fell short of expectations despite spending remaining largely within budget.
Although non-oil revenue exceeded projections, weaker oil receipts and rising debt-servicing costs continued to strain public finances. The Budget Office said ongoing tax reforms, stronger revenue mobilization and efforts to reduce leakages are expected to ease borrowing pressures over time, but analysts warn Nigeria’s fiscal challenges remain significant.
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