The Nigerian government has defended the country’s debt profile amid concerns about rising borrowing levels. Official figures show Nigeria’s total public debt reached 149.39 trillion naira in the first quarter of 2025, representing a significant increase from previous years .
Government officials argue that the debt remains sustainable despite its growth. They point to Nigeria’s debt-to-GDP ratio, which they claim stands between 40% and 45%, comparing favourably to other African nations like South Africa and Ghana .
Finance Minister Wale Edun has expressed optimism about Nigeria’s economic direction. He noted that debt service costs have decreased to about 60% of government revenue, while the debt-to-GDP ratio has fallen to 38.8%. The minister also highlighted a 34.7% increase in government revenues during the first half of 2025 .
The presidency has criticized opponents who question the country’s borrowing practices. Special Adviser Sunday Dare described recent criticism as “noise, not knowledge,” arguing that currency fluctuations rather than new borrowing account for much of the debt increase .
However, the Speaker of the House of Representatives has expressed concerns about debt levels. Tajudeen Abbas noted that Nigeria’s debt-to-GDP ratio has reached 52%, exceeding the legal limit of 40%. He called for stronger parliamentary oversight of borrowing practices .
The government maintains that borrowing is necessary for development. Officials say loans are directed toward infrastructure, health, education, and job creation projects that will benefit the economy in the long term .
Recent borrowing includes approval for over $21 billion in foreign loans for the 2025-2026 fiscal cycle. This includes various currencies and a domestic borrowing component of about 757 billion naira .
The presidency has also highlighted recent improvements in revenue collection. President Tinubu announced that Nigeria met its 2025 revenue target by August, reducing the need for additional borrowing .
Despite government assurances, opposition groups and civil society organizations remain concerned. The Human Rights Writers Association of Nigeria has questioned the government’s commitment to fiscal responsibility, noting that debt continues to rise despite revenue improvements .
The debate over Nigeria’s debt comes amid broader discussions about fiscal management in developing economies. Like many countries, Nigeria faces challenges including rising interest rates and reduced international trade, which complicate debt management efforts .
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