There are indications of a looming debt crisis as Nigeria’s external debt may rise to $45.1 billion by the end of 2024, with the Federal Government planning to secure additional external funding.

This follows a report from the Debt Management Office (DMO), which revealed that the country’s external debt stock increased by $780 million in the second quarter of 2024, growing from $42.12 billion in March to $42.9 billion by June 2024.

Last Thursday, the Federal Executive Council (FEC) approved a $2.2 billion external borrowing plan as part of the Federal Government’s 2024 Appropriation Act financing programme.

Speaking on the fresh borrowing plan, the Minister of Finance, Wale Edun, during a briefing after the FEC meeting, stated that it comprises Eurobond and Sukuk offerings, valued at $1.7 billion and $500 million, respectively.

He added that Nigeria’s ability to access the international capital market indicates acceptance and support for President Bola Ahmed Tinubu’s economic reforms.

With the additional borrowing plan of $2.2 billion, the country’s external debt is projected to reach $45.1 billion by the end of 2024.

However, the borrowing plans come at a time when Nigeria spent $3.58 billion servicing its foreign debt in the first nine months of 2024, a 39.77 percent increase from the $2.56 billion spent during the same period in 2023, according to data from the Central Bank of Nigeria.

Recall that the DMO reported in October 2024 that Nigeria’s total debt stock had risen to N134.3 trillion by the end of June 2024.

Reacting to the rising debt profile, the Director of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, criticized the increasing debt burden, citing insufficient revenue capacity and ongoing infrastructural deficits as major concerns.

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