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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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APC Ex-Councillors Back Governor Abba’s Choice of Murtala Garo as Deputy

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The Forum of All Progressives Congress (APC) Ex-Councillors has expressed strong support for the nomination of Murtala Sule Garo as Deputy Governor, commending Governor Abba Kabir Yusuf for what it described as a thoughtful and strategic decision, according to a statement signed by its chairman, Hon. Sunusi Kata Madobi.

The forum said the endorsement followed a consultative meeting convened to review recent political developments, noting that the Governor’s action demonstrates a clear commitment to competence-driven governance and the consolidation of administrative stability, the statement added.

Members of the forum, who served across the 44 Local Government Areas, praised Governor Yusuf for prioritizing experience, loyalty, and grassroots connection in selecting his deputy, emphasizing that such attributes are critical to strengthening governance delivery and maintaining public trust, the group stated.

The forum further described Garo as a seasoned public servant with a strong background in party administration and political coordination, stressing that his experience positions him to effectively support the Governor in advancing the administration’s development agenda, according to the statement.

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It added that the nomination was both timely and reflective of the Governor’s dedication to effective governance, noting that the decision shows a deliberate effort to align leadership capacity with the expectations of the people, the forum said.

Highlighting broader implications, the group noted that the move reinforces continuity, institutional strength, and inclusive governance, while expressing confidence that Garo’s experience will enhance executive coordination and improve service delivery, the statement read.

The forum also called on party members, stakeholders, and the general public to rally behind the nomination, urging collective support in the interest of unity, stability, and sustained development, according to the statement.

In addition, the group appealed to political actors to place collective progress above personal interests, warning that only cohesive leadership can deliver meaningful and lasting impact, the forum stated.

Reaffirming its position, the APC Ex-Councillors pledged unwavering support for the administration of Governor Abba Kabir Yusuf and reiterated its commitment to promoting decisions that strengthen governance and improve citizens’ welfare, the statement concluded.

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Tinubu Seeks Senate Approval for Fresh $516 Million Loan

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By Yusuf Danjuma Yunusa

President Bola Ahmed Tinubu has formally requested Senate approval for a loan facility totaling $516,333,007 from Deutsche Bank AG to finance the construction of Sections 1, Phase 1a, and 1b of the Sokoto-Badagry Superhighway.

In a letter addressed to Senate President Godswill Akpabio and read during Thursday’s plenary session, the President described the 1,000-kilometer flagship project as a strategic corridor designed to link Nigeria’s Northwest to the Southwest. The highway will run from Illela in Sokoto State, passing through Kebbi, Niger, Kwara, Oyo, and Ogun, and terminate in Badagry, Lagos State.

According to the letter, the loan will specifically cover 120 kilometers of the total route. The financing arrangement is structured as a syndicated loan secured through Deutsche Bank, backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank.

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President Tinubu noted that the Federal Government will provide counterpart funding of ₦265,542,689,569 to cover land acquisition, compensation, and ancillary infrastructure. The loan carries a nine-year tenor, including a three-year grace period, with an interest rate not exceeding the Chicago Mercantile Exchange (CME) SOFR plus 5.3 percent per annum.

The President confirmed that the Federal Executive Council has already approved the financing arrangement and urged the Senate to incorporate the loan into the national borrowing plan. The letter emphasized that the superhighway will improve north-south connectivity, enhance road safety, reduce logistics costs, strengthen trade and food security, and support national cohesion by linking production zones to markets and ports. The central median is also being reserved for future rail integration and utility corridors.

Senate President Akpabio referred the request to the Committee on Foreign and Local Debts, which is expected to report back within one week.

Speaking in support of the project, Senator Mohammed Adamu Aliero (Kebbi Central) described it as a long-overdue initiative, noting that it has been in development for 55 years. “I have inspected the project and I have seen the progress made. I am highly impressed,” Aliero said.

He confirmed that ongoing work includes both concrete and asphalt roads fitted with solar streetlights, and estimated that travel time from Sokoto to Lagos would drop by more than 70 percent — from 13 hours to approximately six hours — upon completion. He urged the Senate to grant expeditious approval once the committee submits its report.

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I Am a Freelance Politician Now: Bala Mohammed Says as He Hosts Peter Obi, Hints at New Coalition

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By Yusuf Danjuma Yunusa

Bauchi State Governor, Bala Mohammed, on Thursday said he is now a “freelance politician” with no direct ties to any political party.

Mohammed made the remark while hosting a chieftain of the African Democratic Congress, Peter Obi, and stakeholders from the South-East in Bauchi.

The governor said the meeting centred on national unity and collaboration, noting that the discussions were not driven by partisan interests.

“Neither PDP nor ADC is standing alone. I am a freelance politician now, and his party is also in limbo. We are looking up to the judiciary.

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“Certainly, we are all in the opposition, and that is why I say this is a political discussion. We will not disclose everything we have discussed in terms of the ‘I’s and ‘t’s we have crossed,” he said.

He added that ongoing engagements among political actors were focused on possible realignment and cooperation ahead of future elections.

“We cannot operate without a platform. At the end of the day, the current political situation may even help unify us and strengthen our chances of winning elections,” he added.

Mohammed described Obi’s visit as symbolic, saying it reflected efforts to build bridges across regions.

“He is talking about unifying the country, building bridges, and creating a new tomorrow for Nigeria. This is what we stand for as a state and as a people. We feel highly honoured by this visit,” Mohammed said.

Speaking earlier, Obi said the visit was aimed at fostering unity and strengthening collaboration across the country.

“My purpose is to solicit support and cooperation among stakeholders, particularly from the Bauchi state, in our quest to unite this country,” Obi said.

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