Nigeria's debt profile has increased significantly under President Bola Ahmed Tinubu's administration, rising by 90.9 percent to N166.79 trillion as of June 2026. According to data from the Debt Management Office (DMO), this represents an increase of N87.4 trillion. The country's external debt stood at $54.52 billion, while domestic debt was N91.59 trillion. This sharp rise in debt has raised concerns about the implications for Nigerians.
The Federal Government accounts for the bulk of Nigeria's debt, with a total of N152.77 trillion, representing about 91.6 percent of the country's total debt. The DMO reported that Nigeria's debt rose by N7.44 trillion in the second quarter of 2026, from N159.35 trillion in March 2026. This rapid accumulation of debt has sparked concerns about the country's ability to manage its finances and provide essential services to its citizens.
Financial analyst and Professor of Accounting at Lead City University, Ibadan, Godwin Oyedokun, has expressed concerns about Nigeria's rising debt profile. He emphasized that the country's debt accumulation deserves serious attention, particularly because of its implications for the welfare of citizens. Oyedokun noted that rising debt translates into greater pressure on future public finances, especially in sectors that benefit ordinary citizens, such as education, healthcare, and infrastructure.
Oyedokun stressed that Nigeria needs a stronger debt management culture anchored on measurable outcomes for citizens. He argued that every borrowing should be linked to a project or investment capable of boosting productivity. The focus, he said, should shift to demonstrating the benefits Nigerians would derive from the borrowed funds. This approach would ensure that debt is used as a useful instrument for development, rather than becoming a serious fiscal concern.
According to Oyedokun, borrowing to finance recurrent expenditure without a credible repayment strategy creates a burden that future generations will inherit without necessarily receiving corresponding assets. He emphasized that the objective should be to ensure that every Naira borrowed today contributes to building an economy capable of generating more income tomorrow. This requires a shift in focus from asking only how much Nigeria owes to asking what Nigerians have received in return for the debt.
The implications of Nigeria's rising debt profile are far-reaching, with concerns about the impact on citizens' welfare and future public finances. Oyedokun noted that debt-service obligations could compete with expenditure on essential services, constraining the fiscal space available to respond to future economic shocks. This highlights the need for a prudent debt management strategy that prioritizes the welfare of citizens and ensures sustainable economic growth.
As Nigeria's debt profile continues to rise, experts are calling for a more transparent and accountable approach to debt management. Oyedokun emphasized that a stronger debt management culture is essential to ensure that debt is used to finance projects and investments that generate sufficient economic returns to support repayment. This would help to mitigate the risks associated with Nigeria's rising debt profile and ensure a more sustainable economic future.
Key points
- Nigeria's debt profile has risen to N166.79 trillion under President Bola Ahmed Tinubu, sparking concerns about the impact on citizens' welfare and future public finances.
- Expert warns that rising debt translates into greater pressure on future public finances, especially in sectors that benefit ordinary citizens.
- A stronger debt management culture anchored on measurable outcomes for citizens is necessary to ensure that debt is used as a useful instrument for development.
