Nigeria's public debt has climbed to ₦166.79 trillion, according to figures released by the Debt Management Office (DMO). This represents an increase of approximately ₦79.4 trillion from the ₦87.38 trillion recorded in June 2023. The latest figure covers the domestic and external debts of the Federal Government, the 36 states, and the Federal Capital Territory.
The country's total public debt comprises ₦91.59 trillion in domestic debt and ₦75.20 trillion in external debt. In dollar terms, the total stood at approximately $120.93 billion. The increase has renewed debate about Nigeria's debt sustainability, particularly as the government continues to grapple with high borrowing costs, inadequate revenue generation, and the need to finance critical infrastructure and social services.
The DMO explained that the securitisation of ₦22.71 trillion in Central Bank of Nigeria Ways and Means advances contributed to the sharp rise in the debt figure reported in 2023. This move brought previously accumulated Central Bank financing into the official public debt stock, improving transparency around the government's obligations.
Economists have consistently argued that Nigeria needs to strengthen non-oil revenue generation, improve tax administration, reduce wasteful expenditure, and ensure that borrowed funds are channelled into productive projects capable of generating economic returns. The Federal Government has also maintained that its reforms are improving revenue performance and creating room for greater investment by the different levels of government.
The consequences of the debt burden extend beyond government balance sheets. High interest payments reduce the fiscal space available for infrastructure, healthcare, education, electricity, and other essential services, particularly when revenue growth fails to keep pace with expenditure commitments. The challenge is further complicated by high domestic interest rates, exchange-rate volatility, and the cost of servicing foreign-denominated debt.
The long-term success of the reforms will depend on their ability to increase government revenue without imposing an excessive burden on households and businesses already facing high living costs. For ordinary Nigerians, the critical question is whether the country's growing debt will translate into better roads, reliable electricity, improved hospitals, quality education, and more economic opportunities.
The Tinubu administration faces a difficult balancing act: managing existing obligations, financing development, and improving the living conditions of Nigerians without allowing borrowing costs to consume an unsustainable share of public revenue. The latest debt figures highlight the need for the government to address these challenges and ensure that its reforms lead to improved economic outcomes for the country.
Key points
- Nigeria's public debt has surged to ₦166.79 trillion, driven by a combination of factors including the securitisation of Central Bank of Nigeria Ways and Means advances and the depreciation of the naira.
