(Ecofin Agency) - The increase in the total public debt of Africa's leading economy, Nigeria, mainly stems from the rise in domestic loans, which constitute 61% of the country's total public debt.

As of December 31, 2023, Nigeria's public debt reached 97.341 trillion naira ($108.2 billion), marking a 5% increase from the same period in 2022, according to data released on March 22 by the Debt Management Office (DMO).

This figure, which includes the combined domestic and foreign debt of the federal government, the 36 state governments, and the Federal Capital Territory (FCT), accounts for 40% of the country's Gross Domestic Product (GDP). DMO said the debt increased primarily due to a 6% increase in domestic borrowing, which accounts for 61% of the overall public debt. Meanwhile, foreign debt, which rose by 2% in 2023, makes up the remaining 39% of the total public debt.

Loans from multilateral financial institutions such as the World Bank and the African Development Bank (AfDB) make up the largest portion of the foreign debt at 49.7%, followed by Eurobonds at 35.5% and bilateral loans at 14%.