Nigeria’s public debt has ballooned to an unprecedented N142 trillion in the third quarter of 2024, according to a report released by the Debt Management Office (DMO). This sharp increase, from N8 trillion recorded just 21 months ago, has raised significant alarm over the nation’s growing debt crisis and its implications for economic stability and citizen welfare.
The report underscores the concerning trajectory of the nation’s borrowing, which poses a serious threat to public resources and long-term development. Analysts warn that the surge in debt could hinder the government’s ability to invest in critical sectors such as education, healthcare, and infrastructure, further straining the country’s already fragile economy.
With rising debt servicing costs, funds are increasingly being diverted from essential public services to meet repayment obligations. Experts have cautioned that this trend could deepen poverty levels and exacerbate socio-economic challenges faced by millions of Nigerians.
Economic analyst Peter Ameh stressed the need for urgent reforms, urging the government to prioritize sustainable debt management practices. “The rapid accumulation of debt undermines Nigeria’s fiscal stability and leaves its citizens bearing the brunt through reduced public spending on essential services,” Ameh stated.
To address the crisis, stakeholders are calling for a more prudent approach to borrowing, greater transparency in public finance management, and a focus on policies that stimulate sustainable economic growth. Failure to act decisively, they warn, could lead to severe economic repercussions and diminish Nigeria’s prospects for long-term development.
As the debt bomb continues to tick, the spotlight remains on the government to implement measures that balance borrowing with fiscal responsibility and prioritize the well-being of its citizens.
