Nigeria’s Debt Management Office (DMO) has revealed that the federal government’s Promissory Notes debt reached N1.65 trillion as of June 2024, marking a 6.5% increase from March 2024.
This surge reflects a dramatic 114% rise in Promissory Notes debt since President Bola Tinubu assumed office.
Promissory Notes, a debt instrument in which the government pledges to repay a specified amount at a future date, have become a key tool for addressing financial shortfalls, enabling the government to meet obligations that cannot be covered immediately through revenue or cash flow.
The significant increase in Promissory Notes underscores the growing dependence on this form of debt to finance government commitments.
According to the DMO’s 2024 half-year public debt report, Nigeria’s total domestic and foreign public debt now stands at N71.2 trillion and $42.9 billion, respectively.
Looking ahead, the federal government has proposed a budget of N47.9 trillion for 2025. Atiku Bagudu, the Minister of Budget and Economic Planning, shared the update after a Federal Executive Council (FEC) meeting chaired by President Tinubu.
The 2025 budget will play a pivotal role in shaping the country’s economic direction under the current administration.
