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Nigeria’s Debt Hits Over 144 Trillion Naira-DMO

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Nigeria’s total public debt rose to N144.67 trillion ($94.23 billion) as of December 31, 2024, reflecting a significant increase of 48.58% compared to N97.34 trillion ($108.23 billion) recorded at the end of December 2023.

This latest figure was disclosed by the Debt Management Office (DMO) in its report on the country’s public debt profile.

The report also indicated a quarter-on-quarter rise of 1.65% from the N142.32 trillion ($88.89 billion) recorded at the end of September 2024, highlighting the continued increase in the nation’s debt burden within the final quarter of the year.

Year-on-year analysis 

An analysis of Nigeria’s public debt on a year-on-year basis reveals a notable increase of N47.32 trillion, representing a 48.58% rise from December 2023 to December 2024.

The surge in public debt was driven primarily by significant increases in both external and domestic borrowings.

Nigeria’s external debt rose substantially by 83.89% from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) in December 2024.

The Federal Government’s domestic debt component rose significantly from N53.26 trillion to N70.41 trillion, a growth of 32.19%. This increase reflects the government’s continued reliance on local borrowing to finance budget deficits and infrastructure projects.

Conversely, the domestic debt owed by states and the Federal Capital Territory (FCT) saw a reduction from N5.86 trillion to N3.97 trillion, representing a decline of 32.27%.

The reduction in state-level borrowing indicates a cautious approach by some subnational governments towards debt accumulation within the year.

Quarter-on-quarter analysis 

The marginal rise within the quarter was driven by increases in both external and domestic debt components.

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External debt grew by N1.4 trillion, moving from N68.89 trillion ($43.03 billion) as of the end of September 2024 to N70.29 trillion ($45.78 billion) in December 2024.

The increase within the quarter was influenced by additional foreign loans obtained in the last three months of the year, alongside the further weakening of the naira against major international currencies.

On the domestic front, debt rose slightly by 1.29%, from N73.43 trillion ($45.87 billion) in September 2024 to N74.38 trillion ($48.44 billion) by the end of December. The Federal Government’s domestic debt increased from N69.22 trillion to N70.41 trillion within the quarter.

However, domestic debt attributed to states and the FCT reduced from N4.21 trillion to N3.97 trillion, reflecting a 5.69% decrease.

Debt composition 

As of December 2024, external debt constituted 48.59% of Nigeria’s total public debt, while domestic debt made up 51.41%, indicating a relatively balanced debt structure.

However, the continued increase in external borrowings suggests a growing reliance on foreign debt to bridge budgetary shortfalls

The breakdown of external debt shows that the Federal Government accounted for N62.92 trillion ($40.98 billion), while states and the FCT held N7.37 trillion ($4.80 billion).

In the domestic debt segment, the Federal Government held N70.41 trillion ($45.86 billion), with states and the FCT accounting for N3.97 trillion ($2.58 billion).

What you should know 

The rise in public debt has sparked concerns among economic analysts, given the potential implications for Nigeria’s fiscal stability.

The sharp increase, particularly in external debt, highlights the vulnerability of the nation’s finances to exchange rate fluctuations and changes in global economic conditions. With the naira’s continued depreciation, the cost of servicing foreign debt could escalate, placing additional strain on the country’s financial resources.

The government’s dependence on both external and domestic borrowing to fund critical projects points to underlying fiscal challenges, including revenue shortfalls and the need for substantial infrastructure investments.

While domestic debt remains the larger component of the debt portfolio, the significant growth in external liabilities underlines the importance of a balanced approach to debt management, particularly in light of Nigeria’s limited foreign exchange earnings

Financial experts have called for more prudent debt management practices, emphasizing the need to boost revenue generation through economic diversification and enhanced tax collection.

They warn that while borrowing can be necessary for development, it must be matched with strategic plans to ensure sustainability and avoid overburdening future budgets.

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Jonathan Urges National Assembly to Overhaul Electoral Litigation Process, Create Specialised Court

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Good Luck Ebele Jonathan

 

By Yusuf Danjuma Yunusa

Former President Goodluck Jonathan has called on the National Assembly to overhaul Nigeria’s electoral litigation process by establishing a specialised constitutional court to handle election disputes.

Speaking on Wednesday in Abuja at the 70th birthday and book launch of Senator Gbenga Daniel (APC, Ogun East), Mr. Jonathan argued that a dedicated court would reduce the strain on the political system by resolving election-related cases in a single phase.

He criticised the current three-tier system for governorship disputes—moving from a tribunal to the Court of Appeal and finally to the Supreme Court—as ineffective and unnecessarily prolonged.

Recalling a landmark case from 2011, Jonathan highlighted how technicalities have historically undermined electoral justice. “I remember a particular case where someone lost an election as a governor because the law then stipulated the use of red ink to tick voters’ names,” he said.

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“In an entire senatorial district, they were not provided with red pens and used available black or green pens. As a result, those votes were cancelled. The Appeal Court upheld this, even though the lower tribunal felt that a tick is a tick.”

While acknowledging that the National Assembly later amended the law to allow governorship cases to reach the Supreme Court—specifically to prevent such injustices—Jonathan noted that the amendment failed to address the length of the litigation process.

The former president urged Nigeria to draw lessons from Francophone African countries, which employ specialised constitutional courts for political matters. He proposed that if the Supreme Court must remain the final arbiter for governorship elections, the lower tribunal stage should be eliminated entirely.

“I believe the ideal thing to do, which I was considering when I was in office, was to make sure that it’s only one tribunal that listens to any litigation relating to politics. This is done, especially in the Francophone countries in Africa. They have constitutional courts. Anything about elections, only the constitutional courts take decisions,” Jonathan explained.

He also challenged the judiciary to exercise firmness in its rulings, drawing an analogy to football. “Politics is like soccer, and the judges are the referees. If the referee looks the other way, players will break legs or score with their hands,” he added.

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ADC Defies INEC, Vows to Proceed with Congresses Amid Leadership Crisis

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By Yusuf Danjuma Yunusa

Nigeria’s African Democratic Congress (ADC) has declared it will go ahead with its scheduled congresses and national convention, defying the Independent National Electoral Commission’s (INEC) decision to suspend recognition of the party’s leadership.

The party’s National Publicity Secretary, Bolaji Abdullahi, insisted that the ADC has fulfilled all legal requirements, having formally notified the electoral body of its planned events.

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“We will go ahead with our congresses. We have given INEC 21 days’ notice, they have accepted. Whether they come or not, we will continue with our congresses and our convention,” Abdullahi said during an interview on Arise TV.

His remarks come just days after INEC announced it would withhold recognition of the ADC’s leadership pending the outcome of a court case related to an internal dispute within the party.

The standoff sets the stage for a potential clash between the electoral commission and the opposition party, raising fresh questions about party governance, internal democracy, and the legal limits of INEC’s oversight powers in Nigeria.

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ADC Rejects INEC’s Ruling Interpretation, Vows to Clarify Contradictions

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By Yusuf Danjuma Yunusa

The African Democratic Congress (ADC) has sharply criticized the Independent National Electoral Commission (INEC) over its interpretation of a recent Court of Appeal statement, alleging that the commission has abandoned its neutrality by siding with the federal government.

In a press release issued on Wednesday, the ADC’s National Publicity Secretary, Mallam Bolaji Abdullahi, rejected INEC’s position, describing it as “contradictory and inconsistent with facts.” The party claimed that INEC was acting under pressure from a government it characterized as “jittery” due to the ADC’s growing momentum.

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“We reject INEC’s interpretation of the Court of Appeal ruling,” the statement read. “We knew that INEC was being pressured by a government that has become jittery from the ADC’s rising momentum even in the face of its relentless assault on all opposition parties.”

The ADC accused the electoral commission of caving to political pressure, asserting that it has effectively chosen to align with the government against the Nigerian people. The party vowed to publicly clarify what it called the contradictions in INEC’s statement.

According to the release, the ADC is currently reviewing its legal and political options and will announce its next steps in the coming days. The party urged its members and the public to remain steadfast.

“We are currently reviewing our options, and we shall make these known soon. Meanwhile, we call on our members and all Nigerians to remain steadfast as they await further directives,” the statement concluded, adding the slogans: “Nigeria is rising. ADC is rising.”

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