As of September 30, 2024, Nigeria's total public debt increased by 5.97%, or N8.02 trillion, to N142.3 trillion, the Debt Management Office (DMO) has reported.

According to the DMO, the increase was caused by both the federal government's significant domestic borrowing and the depreciation of the naira. Concerns about sustainability have been raised by Nigeria's rising debt profile.

By the end of September, the exchange rate had dropped from N1,470.19/$ in June to N1,601.03/$.

The DMO claims that the majority of the nation's debt, which increased from N66.96 trillion in June to N69.22 trillion in September, is owed by the Federal Government.

From N4.27 trillion to N4.21 trillion, the amount due by states and the Federal Capital Territory (FCT) decreased somewhat over the time frame. As of June 2024, the Nigeria's total national debt was N134.3 trillion.

Nigeria's external debt increased slightly from $42.9 billion in June to $43.03 billion in September, according to DMO data. During the same time period, the naira equivalent of external debt increased dramatically by 9.22%, from N63.07 trillion to N68.89 trillion.

Domestic debt had a mixed performance, falling from $48.45 billion in June to $45.87 billion in September, a 5.34% decrease in dollar terms. However, domestic debt rose from N71.22 trillion to N73.43 trillion, or 3.1%, in naira terms.

The highest portion of domestic debt was found to be Federal Government bonds, which rose 4.47 percent from N52.32 trillion in June to N54.65 trillion in September.

Compared to 78.13 percent in the previous quarter, this amounts to 78.95 percent of the total domestic debt stock. Most of this growth was due to the issue of bonds in naira currency.

It was also observed that the debt stock increased by N1.47 trillion as a result of Nigeria's first domestic bond denominated in dollars.

Treasury Bills, the second-largest component of domestic debt, decreased slightly by 0.66 per cent to N11.73 trillion from N11.81 trillion in the previous quarter, according to the report.

This decline is in line with initiatives to reduce rollover risks and manage short-term debt. The study also reveals that while debts to France and Germany were the same, loans from China, Nigeria's biggest bilateral lender, decreased by $99.98 million.