Nigeria's External Debt Set to Reach $45.1 Billion by End of 2024 Amid New Borrowing Plan

Nigeria's external debt is projected to reach $45.1 billion by the end of 2024, raising some concerns about sustainable debt levels. According to a recent report from the Debt Management Office (DMO), Nigeria’s foreign debt increased by $780 million, from $42.12 billion in March to $42.9 billion by June 2024.

On Thursday, the Federal Executive Council (FEC) approved a $2.2 billion external borrowing plan as part of the Federal Government’s financing for the 2024 Appropriations Act. Minister of Finance Wale Edun explained that this borrowing plan includes $1.7 billion through Eurobond sales and $500 million through Sukuk issuance, highlighting Nigeria’s continued access to the global capital market—a signal, he noted, of confidence in President Bola Ahmed Tinubu’s economic reforms.

This borrowing initiative could bring Nigeria’s foreign debt stock to an estimated $45.1 billion by year-end. Meanwhile, data from the Central Bank of Nigeria indicates that Nigeria spent $3.58 billion in the first nine months of 2024 to service its foreign debt, marking a 39.77 percent increase over the same period in 2023.

The DMO also reported in October 2024 that Nigeria’s total debt stock had risen to N134.3 trillion as of June. Muda Yusuf, director of the Centre for the Promotion of Private Enterprise (CPPE), expressed concern over the growing debt burden, noting that persistent infrastructure challenges and limited revenue capacity remain key issues impacting fiscal stability.