- CBN injects $197.71m into FX market to maintain liquidity
The Debt Management Office has revealed that Nigeria’s total public debt, comprising the debt obligations of the federal and state governments as well as the Federal Capital Territory increased to N144.665 trillion by December 31, 2024, against N97.34 trillion posted at the end of December 2023.
Also, the DMO report showed that while Lagos, Rivers, and Ogun States are the three most indebted states, with over N900 billion, N364 billion, and N211 billion debts, respectively, Jigawa State is the least indebted state with less than N2 billion debt.
This represented an increase of N47.32 trillion or 48.58 per cent year-on-year (Y-o-Y) based on the latest statistics released by the agency.
According to the DMO, the increase was driven by both external and domestic debt components.
The steep increase in public debt figures in 2024 was traced to new external borrowings and the impact of naira depreciation, which raised the naira equivalent of dollar-denominated debt
The debt management agency’s data equally revealed a quarter-on-quarter rise of 1.65 per cent from the N142.32 trillion ($88.89 billion) recorded at the end of September 2024.
It explained that the rise in public debt figures was largely propelled by significant increases in both external and domestic borrowings.
According to the DMO, Nigeria’s external debt portfolio soared by 83.89 per cent from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion or $45.78 billion) in December 2024, a development attributed to new external borrowings and the impact of naira depreciation, which led to a rise in the naira equivalent of dollar-denominated debt.
The DMO also disclosed that domestic debt posted an increase of 25.77 per cent from N59.12 trillion ($65.7 billion) at the end of December 2023 to N74.38 trillion ($48.44 billion) in December 2024.
While the Federal Government recorded considerable growth in its domestic debt portfolio, from N53.26 trillion to N70.4 trillion, indicating a 32.19 per cent increase, the domestic debt component of states and the Federal Capital Territory declined significantly from N5.86 trillion to N3.97 trillion, representing a 32.27 per cent drop.
A breakdown of the external debt component indicates that the Federal Government accounted for N62.92 trillion ($40.98 billion), while states and the FCT held N7.37 trillion ($4.80 billion) during the review period.
Similarly, the Federal Government accounted for N70.41 trillion ($45.86 billion) of the domestic debt, while states and the FCT held N3.97tn ($2.58bn).
Meanwhile, Lagos State has retained its top spot as the most indebted subnational with over N900 billion (N900,191,716,363.58), followed by Rivers State with over N364 billion (N364,393,017,734.54), and Ogun State with over N211 billion (N211,860,195,068.71).
In the league of 10 most indebted states are Lagos (N900,191,716,363.58), Rivers (N364,393,017,734.54 Ogun State (N211,860,195,068.71), Delta State (N199,575,659,736.39), Bauchi State (N143,948,069,260.24), Niger State (N140,739,523,757.12), Imo State (N126,144,102,593.35), Akwa Ibom State (N122,193,037,697.65), Benue State (N122,575,619,594.08, and Enugu State (N119,284,430,106.62).
In the same vein, 10 states are in the bottom league with the lowest debt profile.
They include Jigawa State with N1,329,234,426.88 (N1.329 billion), Ondo State,(N12,876,176,042.46, Kebbi State (N15,222,009,996.95), Ebonyi State (N18,112,026,850.56), Katsina State ((N25,679,586,232.65), Nasarawa State (N26,597,217,075.38), Borno State (N27,914,959,613.76), Anambra State (N28,684,540,143.05), Kogi State (N41,587,578,673.55), and Yobe State (N42,055,410,877.07).
From the figures released by the DMO, it also emerged that domestic debt service between January and December 2024 gulped a total of N5.969 trillion (N5,969,905,481,331.17).
Interest paid on Federal Government Bonds accounted for N4.689 trillion (N4,689,904,918,278.03) of the debt service obligation during the period.
Also, external debt service gulped a total of $4,656 billion during the same period, with multilateral loans accounting for $2,619 billion, bilateral loans – $570.67 million, and commercial loans, especially Eurobond, chalking up $1,152 billion, among others.
CBN injects $197.71m into FX market to maintain liquidity
Also, the Central Bank of Nigeria on Friday injected $197.71 million into the foreign exchange market to authorised dealers, in a renewed bid to ease pressure on the naira, and maintain market stability and liquidity, amid the global shocks arising from the falling oil prices and the new United States’ import tariffs.
A statement signed by the apex bank’s Director of the Financial Markets Department, Omolara Omotunde Duke, said the CBN’s action followed noticeable movements in the FX market between April 3 and 4, 2025.
She said the movements were being driven by broader economic shifts affecting several emerging and developing countries.
Duke explained further that the intervention was in response to the impact of the ongoing tariff war on the crude oil price and the foreign exchange market.
She said: “The Central Bank of Nigeria (CBN) has noted recent movements in the foreign exchange market between April 3 and 4, 2025, reflecting broader global macroeconomic shifts currently affecting several emerging markets and developing economies.
“These developments were a result of the recent announcement of new import tariffs by the United States government on imports from several economies, which has triggered a period of adjustment across global markets,” the statement said.
The statement noted that crude oil, Nigeria’s main revenue earner, has now dropped more than 12 per cent in recent days, trading at around $65.50 per barrel, a development the apex bank said poses significant challenges for the country’s dollar inflows and external reserves.
“While Lagos, Rivers, and Ogun States are the three most indebted states, with over N900 billion, N364 billion, and N211 billion debts, respectively, Jigawa State is the least indebted state with less than N2 billion debt.”
It is believed that the 12 per cent decline in crude oil prices is presenting new dynamics for oil-exporting countries such as Nigeria.
She stated: “The Central Bank of Nigeria has noted recent movements in the foreign exchange market between April 3 and 4, 2025, reflecting broader global macroeconomic shifts currently affecting several Emerging Market and Developing Economies.
“These developments were a result of the recent announcement of new import tariffs by the United States government on imports from several economies, which has triggered a period of adjustment across global markets.
“In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of US$197.71 million through sales to Authorised Dealers. This measured step aligns with the Bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.”
Despite the turbulence, the central bank insisted Nigeria’s FX framework remains resilient and capable of adapting to changing economic conditions.
It also reminded banks and FX dealers to stick to the rules laid out in the Nigeria FX Market Code and to maintain high standards in their dealings with customers and other market players.
It stated that “The CBN continues to monitor global and domestic market conditions and remains confident in the resilience of Nigeria’s foreign exchange framework, which is designed to adjust appropriately to evolving fundamentals.
“All Authorised Dealers are reminded to adhere strictly to the principles outlined in the Nigeria FX Market Code and to uphold the highest standards in their dealings with clients and market counterparties.”