ActionAid Expresses Concern as Nigeria’s Debt Profile Hits N13trn

Chuks Okocha in Abuja

ActionAid Nigeria (AAN) has expressed concern over Nigeria’s debt profile, which hit N134.297 trillion in June 2024.

The Country Director, AAN, Andrew Mamedu, in a statement said the country’s debt profile was of serious concern following the burden pushed to citizens, which compounded their current plight.

Mamedu pointed out that placing a burden of approximately N619,501 on each Nigerian citizen, a figure that far exceeds the recently approved minimum wage of N70,000, worsens their means of survival, warning that, “without immediate intervention, Nigeria risks falling into a full-blown debt crisis.”

He said: “ActionAid Nigeria is deeply alarmed by Nigeria’s escalating public debt, which now stands at an unprecedented N134.297 trillion as of June 2024, according to figures from the Debt Management Office (DMO). This staggering debt has grown by nearly N13 trillion in just three months—a rate of nearly 11 per cent—placing a burden of approximately N619,501 on each Nigerian citizen, a figure that far exceeds the recently approved minimum wage of N70,000. Without immediate intervention, Nigeria risks falling into a full-blown debt crisis.

“This debt burden, driven primarily by large-scale borrowing, underscores a critical need to reassess Nigeria’s fiscal policies. While infrastructure development is crucial, the cost of these projects should not come at the expense of Nigerians’ access to basic services. With a population of over 216 million, this unsustainable trajectory has led to widespread concerns about the impact on poverty, healthcare, education, and overall quality of life.

“Nigeria’s public debt profile is divided between N63 trillion in external debt and N71.2 trillion in domestic debt. The federal government holds the bulk of this debt, accounting for N55.8 trillion externally and N66.9 trillion domestically, while states collectively owe N7.1 trillion in external and N4.2 trillion in domestic debt.”

“Lagos State carries the heaviest domestic debt burden at N885.99 billion, followed by Rivers State at N389.20 billion. These figures reveal a stark fiscal imbalance, indicating that both federal and state governments must re-evaluate their spending priorities and debt management practices.”