A recent report from the Debt Management Office (DMO) has revealed that the naira devaluation has increased Nigeria’s external debt by approximately N30.03 trillion between 2023 and June 2024. This significant increase is particularly notable when considered in naira terms.
As of June 1, 2023, Nigeria’s external debt stood at $43.16 billion, with the country owing $1.61 billion to the International Monetary Fund (IMF) and $16.32 billion to the World Bank. At the exchange rate of N770.38 to the dollar, this amounted to N33.25 trillion.
However, by June 1, 2024, the naira had depreciated by 47.6%, with the exchange rate rising to N1,470.19 to the dollar. As a result, Nigeria’s external debt, which had dropped to $42.90 billion, is now equivalent to N63.07 trillion.
KEY INSIGHTS
- Naira Devaluation: The naira depreciated by 47.6% between June 2023 and June 2024.
- External Debt Increase: Nigeria’s external debt increased by approximately N30.03 trillion between 2023 and June 2024.
- Exchange Rate Impact: The exchange rate rose from N770.38 to N1,470.19 to the dollar, contributing to the increase in external debt.
- Total Debt: As of June 2024, external debt accounted for 46.96% of Nigeria’s total debt, up from 38.05% in the same month last year.
