Nigeria's debt profile has surged to N166.79 trillion as of June 2026, according to data released by the country's Debt Management Office, DMO. This represents a 90.9 percent increase under President Bola Tinubu's administration, with the debt rising by N87.4 trillion from N79.39 trillion in May 2023. The DMO reported that Nigeria's external debt rose by 28.4 percent to $54.52 billion, while domestic debt increased by 55 percent to N91.59 trillion.
The country's current debt burden means that each Nigerian owes N716,822, representing an 87 percent increase from N383,442 three years ago. This has sparked concerns among opposition party leaders, including Atiku Abubakar of the African Democratic Congress, ADC. Atiku urged the Tinubu government to disclose the impact of the country's current debt burden before securing a fresh $1.5 billion loan from the World Bank.
ActionAid Nigeria has also expressed concerns over the country's rising debt-servicing burden, which stood at N2.14 trillion in the second quarter of 2026, down from N3.14 trillion. Economists and financial experts, including Professor of Accounting at Lead City University, Godwin Oyedokun, and economist Gbolade Idakolo, have spoken out about the far-reaching implications of Nigeria's rising debt profile.
Oyedokun stressed that Nigeria's rising debt profile requires greater scrutiny, particularly regarding the purpose, cost, repayment terms, and economic value of proposed borrowings. He noted that borrowing could support economic development when properly targeted and transparently managed. Oyedokun called for a clear debt-to-development strategy that links every major borrowing to specific and measurable economic objectives.
Idakolo raised concerns over Nigeria's rising debt profile, warning that increased borrowing has resulted in a high cost of debt servicing. He emphasized that borrowing for infrastructure and other developmental projects should translate into tangible benefits for citizens. Idakolo expressed alarm over the estimated debt burden of more than N700,000 per Nigerian, particularly given the country's growing population.
Oyedokun further urged stronger oversight of borrowed funds to ensure that projects financed with debt are completed and deliver the economic benefits for which the loans were obtained. He stressed that the government should provide Nigerians with sufficient information on the terms and expected outcomes of major borrowing programmes. Oyedokun maintained that the central issue in Nigeria's debt debate is not merely the size of the country's borrowing but the purpose and impact of such borrowing.
The country's rising debt profile has sparked concerns about its potential impact on Nigeria's future fiscal space. Economists warn that excessive borrowing can constrain the government's ability to fund critical sectors such as education, healthcare, and infrastructure. The government's ability to manage its debt burden and ensure that borrowed funds generate sufficient economic value will be crucial in determining the country's economic prospects.
Key points
- Nigeria's debt profile has surged to N166.79 trillion, with debt per citizen rising above N700,000.
- Economists have expressed concerns over the country's rising debt-servicing burden and its potential impact on Nigeria's future fiscal space.
- Experts are calling for a clear debt-to-development strategy that links every major borrowing to specific and measurable economic objectives.
