Nigeria's economy, already experiencing its worst downturn, has been dealt another blow as the country's public debt has increased to N134.30 trillion (US$91.35 billion) in Q2 2024, with a significant jump in Naira debt. This development comes on the heels of President Bola Ahmed Tinubu's decision to end fuel subsidies and float the Nigerian currency, the Naira, which has driven the economy to its lowest levels ever.

The data, published by the National Bureau of Statistics in its latest Nigeria Domestic and Foreign Debt report for Q2 2024, shows that while Nigeria's debt in the dollar dropped from US$91.46 billion in Q1 2024 to US$91.35 billion in Q2, its debt in the Naira saw a significant increase from N121.67 trillion to N134.30 trillion within the same period. This disparity is attributed to the devaluation of the Naira, which has lost significant value against the dollar since the start of the current administration.

The report highlights that total external debt stood at N63.07 trillion (US$42.90 billion) in Q2 2024, while total domestic debt was N71.22 trillion (US$48.45 billion). The share of external debt (in Naira value) to total public debt was 46.96% in Q2 2024, while the share of domestic debt (in Naira value) to total public debt was 53.04%.

In an effort to boost the country's health and education sectors, the World Bank approved a $1.57 billion financing package for Nigeria in September. This loan is part of a new program aimed at improving Nigeria's economic stability and providing vital assistance to its most vulnerable citizens. As of June, Nigeria held the highest debt to the World Bank's International Development Association (IDA), totaling $16.6 billion.

According to the Debt Management Office, the World Bank continues to be Nigeria's biggest lender, with over $15 billion in loans as of the end of March. In contrast, President Tinubu stated that the nation's Ways and Means debt, which amounted to more than N30 trillion, had been paid off. This announcement was made during the national speech on Nigeria's 64th Independence Day.

The implications of Nigeria's debt crisis are far-reaching, with the potential to further exacerbate the country's economic downturn. As the Naira continues to lose value, the burden of debt repayment will only increase, putting additional pressure on the government and citizens alike. It remains to be seen how the government will navigate this complex situation and implement measures to stabilize the economy and mitigate the effects of the debt crisis.

In conclusion, Nigeria's debt crisis is a pressing issue that requires immediate attention and strategic planning. The government must work to address the root causes of the crisis, including the devaluation of the Naira and the impact of fuel subsidy removal, to prevent further economic instability and ensure a sustainable future for the country.