Nigeria’s Per Capita Debt Skyrockets: Each Nigerian Now Owes N396,376.19

The National Bureau of Statistics (NBS) has released a sobering report on the country’s public debt, revealing that each Nigerian citizen now carries a heavy financial burden of N396,376.19 in terms of debt per capita.

The NBS’s report paints a grim picture of Nigeria’s fiscal landscape, showing that the nation’s total public debt has surged by 75.27 percent from N49.85 trillion in the first quarter of 2023 to N87.38 trillion at the close of the second quarter of 2023.

In plain monetary terms, this represents an alarming increase of N37.53 trillion in a mere three months.

To calculate the debt per capita, the Independent Corrupt Practices and Other Related Offences Commission (ICIR) divided the total public debt by Nigeria’s estimated population, which stands at approximately 220.4 million, according to the World Poverty Clock.

Breaking down the debt by categories, it was revealed that the federal government’s total external debts amounted to a substantial N29.9 trillion, with the 36 states and the Federal Capital Territory collectively carrying N3.35 trillion in external debt.

On the domestic front, the federal government’s debt reached a staggering N48.31 trillion, while the states and the Federal Capital Territory collectively owed N5.82 trillion.

A notable portion of this debt comprises the N22.71 trillion in Ways and Means Advances extended by the Central Bank of Nigeria (CBN) to the federal government.

It’s worth noting that these figures also encompass new borrowings made by both the federal government and sub-national entities from local and external sources.

The Ways and Means Advances, a financial mechanism employed by the federal government in times of emergencies, allows for short-term loans from the CBN.

However, these loans are restricted by Section 38 of the CBN Act which stipulates that the loan should not exceed five percent of the country’s previous year’s actual revenue.

It has been reported that CBN’s lending in this regard exceeded the Act’s limits, extending loans of $49.2 billion to the previous government.

According to the NBS, as of the end of June 2023, the domestic debt stood at an alarming N54.13 trillion (equivalent to $70,264.58 million), while the external debt reached N33.25 trillion (equivalent to $43,159.19 million).

A closer look at the regional debt distribution reveals that Lagos State carries the heaviest domestic debt burden in Q2 2023, with an eye-watering N996.44 billion.

Delta State follows closely behind with N465.40 billion, while Jigawa State finds itself at the other end of the spectrum with the lowest domestic debt of N43.13 billion, just ahead of Kebbi State with N60.94 billion.

The alarming debt per capita figure underscores the urgent need for Nigeria’s policymakers to address the nation’s fiscal challenges and implement prudent financial management strategies. As the nation grapples with this daunting burden, the path to economic stability and prosperity appears more challenging than ever.